Episode Income Fund

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Investment objective and policy

The Fund’s objective is to generate a high and rising level of income over time through investment in a diversified range of assets. Subject to this, the Fund aims to provide capital growth over the long term.The fund manager adopts a flexible approach to the allocation of capital between asset classes in response to changes in economic conditions and the valuation of assets. Central to this approach is the identification of episodes, which are periods of time during which, in the fund manager's view, asset prices become over- or under-stated, relative to objective valuation measures, due to the emotional reaction of investors to events. These episodes can exist over both the short and medium term.The fund invests in transferable securities, fixed income assets (including, but not limited to, corporate bonds and government and public securities), warrants, money market instruments, deposits, cash and near cash. Exposure to these assets, and to property, may be gained via collective investment schemes and derivatives (including equity index futures, currency forwards, interest rate swaps and other liquid derivatives). The manager may seek to minimise currency risk through the combination of diversification and hedging. Derivatives may also be used for efficient portfolio management purposes.

Investment approach

The fund aims to generate a high and rising level of income over time through investment in a diversified range of assets. Subject to this, the fund aims to provide capital growth over the long term.The fund manager believes the best approach for achieving this lies in the flexible allocation of capital between asset classes, guided by a robust valuation framework. In particular, he seeks to respond where asset prices move away from a reasonable sense of 'fair' value due to investors reacting emotionally to events. He believes such episodes create opportunities because emotions should be less important than underlying fundamentals over the medium and long term.The fund will typically hold between 20-50% in equity, 40-80% in fixed income (including cash), and up to 20% in other assets (primarily indirect exposure to commercial property). A minimum of 70% of the fund will be exposed to sterling, though the fund manager will actively manage currency exposures to seek to enhance returns.

Performance

The value of stockmarket investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Fund Management Team

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The value of stockmarket investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.

 

Important information



Source: Morningstar. Performance figures are on a price to price basis with net income reinvested. Performance figures may not reflect all relevant charges.

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The value of stockmarket investments will fluctuate, which will cause fund prices to fall as well as rise and investors may not get back the original amount invested. 
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