SWIP UK Flexible Strategy Fund
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SWIP UK Flexible Strategy Fund Factsheet as at 31 May 2011 Investment Objective To achieve a positive capital return, over the long term, regardless of market conditions, through investment and disinvestment (directly and indirectly) in a portfolio predominantly consisting of UK equities, related derivative contracts, money market instruments, cash, near cash and deposits. Fund Strategy This is a best ideas Fund designed to generate positive returns in all market conditions. It typically invests in 25-40 of the most attractive opportunities identified by our rigorous research process. The Fund has the ability to reduce market exposure through the use of financial derivatives, which aims to deliver long term returns comparable to those available from UK equities, but with lower volatility. Fund Manager Biography James Clunie, took over the Fund in August 2009 and has been with the group since April 2007. James has 20 years experience, 3 of which have been gained at SWIP. Fund Statistics Benchmark 3 month LIBOR Sector IMA Specialist Fund Manager James Clunie Fund Launch Date May 2006 Fund Size £8.9 million Number of Holdings 48 Historic Yield (net)# 0.9% p.a Dealing Information - Share Class A Minimum Investment £1,000 Valuation Point 12 noon Settlement Terms T+4 Accounting Period End Dates 31 December (Final) & 30 June (Interim) Ex-Dividend Dates 30 Jun & 31 Dec Payment Dates 28 Feb & 31 Aug Last Distribution Rate 0.8827p (as at June 2010) Fund Charges - Share Class A Initial Charge 5.00% Annual Charge 1.50% Total Expense Ratio 1.67% Fund Codes and Prices - Share Class A Sedol B1265J6 ISIN GB00B1265J60 Bloomberg SWARUAA LN Lipper LP65021850 NAV Price as at 31 May 2011 105.6p NAV - 12 Month High 19 May 2011 105.6p NAV - 12 Month Low 8 June 2010 91.9p Risk Profile 1 Year 3 Years Beta 0.13 0.49 Correlation 0.40 0.77 Sharpe Ratio 1.86 -0.02 Fund Standard Deviation 4.77 15.85 Benchmark Standard Deviation 14.53 25.06 Sortino Ratio 3.46 -0.02 1 Month 99% VaR 3.82 Source: SWIP. The Fund's VaR limit is 12%. Risk statistics have been calculated using the FTSE All-Share Index. #Yields shown are estimates based on a snapshot of the portfolio and are not guaranteed. Yield terms are defined overleaf. Performance Returns - Calendar Years (%) 2011* 2010 2009 2008 2007 Fund 5.60 7.33 29.73 -29.66 -6.67 Sector Average N/A N/A N/A N/A N/A Benchmark 0.33 0.70 1.22 5.65 6.14 Quartile N/A N/A N/A N/A N/A Cumulative Performance Returns (%) Cumulative Performance Returns (%) 1 Mth 3 Mths 1 Yr 3 Yrs p.a 5 Yrs p.a Fund 0.67 3.23 13.50 1.56 1.38 Sector Average N/A N/A N/A N/A N/A Benchmark 0.07 0.21 0.77 1.80 3.38 Quartile N/A N/A N/A N/A N/A Source: Lipper mid-mid basis, net of fees. 3 Month LIBOR, gross of fees. *Year to date figure. Lipper Fund returns are priced at 12 noon. Please note the text overleaf is based on Fund & Benchmark returns at close of business day. Please note sector average is not applicable as this Fund is in the specialist sector and is not comparitive to the other Funds within this sector. Past Performance is not a guide to future performance For professional use only NAV Price Source: DataStream
Transcript of SWIP UK Flexible Strategy Fund
SWIP UK Flexible Strategy FundFactsheet as at 31 May 2011
Investment Objective
To achieve a positive capital return, over the long term, regardless of market conditions, through investment and disinvestment (directly andindirectly) in a portfolio predominantly consisting of UK equities, related derivative contracts, money market instruments, cash, near cash anddeposits.
Fund Strategy
This is a best ideas Fund designed to generate positive returns in all market conditions. It typically invests in 25-40 of the most attractiveopportunities identified by our rigorous research process. The Fund has the ability to reduce market exposure through the use of financialderivatives, which aims to deliver long term returns comparable to those available from UK equities, but with lower volatility.
Fund Manager BiographyJames Clunie, took over the Fund in August2009 and has been with the group sinceApril 2007. James has 20 yearsexperience, 3 of which have been gained atSWIP.
Fund StatisticsBenchmark 3 month LIBORSector IMA SpecialistFund Manager James ClunieFund Launch Date May 2006Fund Size £8.9 millionNumber of Holdings 48Historic Yield (net)# 0.9% p.a
Dealing Information - Share Class AMinimum Investment £1,000Valuation Point 12 noonSettlement Terms T+4Accounting Period End Dates 31 December (Final)
& 30 June (Interim)Ex-Dividend Dates 30 Jun & 31 DecPayment Dates 28 Feb & 31 AugLast Distribution Rate 0.8827p (as at June 2010)
Fund Charges - Share Class AInitial Charge 5.00%Annual Charge 1.50%Total Expense Ratio 1.67%
Fund Codes and Prices - Share Class ASedol B1265J6ISIN GB00B1265J60Bloomberg SWARUAA LNLipper LP65021850NAV Price as at 31 May 2011
105.6pNAV - 12 Month High 19 May 2011
105.6pNAV - 12 Month Low 8 June 2010
91.9p
Risk Profile1 Year 3 Years
Beta 0.13 0.49Correlation 0.40 0.77Sharpe Ratio 1.86 -0.02Fund Standard Deviation 4.77 15.85Benchmark Standard Deviation 14.53 25.06Sortino Ratio 3.46 -0.02
1 Month 99% VaR 3.82Source: SWIP. The Fund's VaR limit is 12%. Risk statistics have been calculated usingthe FTSE All-Share Index.#Yields shown are estimates based on a snapshot of the portfolio and are notguaranteed. Yield terms are defined overleaf.
Performance Returns - Calendar Years (%)2011* 2010 2009 2008 2007
Fund 5.60 7.33 29.73 -29.66 -6.67Sector Average N/A N/A N/A N/A N/ABenchmark 0.33 0.70 1.22 5.65 6.14Quartile N/A N/A N/A N/A N/A
Cumulative Performance Returns (%)
Cumulative Performance Returns (%)1 Mth 3 Mths 1 Yr 3 Yrs
p.a5 Yrsp.a
Fund 0.67 3.23 13.50 1.56 1.38Sector Average N/A N/A N/A N/A N/ABenchmark 0.07 0.21 0.77 1.80 3.38Quartile N/A N/A N/A N/A N/A
Source: Lipper mid-mid basis, net of fees. 3 Month LIBOR, gross of fees. *Yearto date figure. Lipper Fund returns are priced at 12 noon. Please note the textoverleaf is based on Fund & Benchmark returns at close of businessday. Please note sector average is not applicable as this Fund is inthe specialist sector and is not comparitive to the other Funds within this sector.Past Performance is not a guide to future performance
For professional use only
NAV Price Source: DataStream
Market ReviewEquity markets retreated over May, as the eurozone debt crisis intensified and disappointing data from the US, China and elsewhere castdoubt over the economic outlook.
Fund PerformanceThe Fund was up 0.47% over the month (based at close of business day), driven by strong performances from some of the more defensiveareas of the market. AstraZeneca was the largest single contributor, the shares having rallied strongly since their 2011 lows in mid March. In contrast the holding in BG Group proved detrimental as the company's 1st quarter earnings disappointed.
Fund PositioningTransactions concentrated on increasing positions in our conviction buy ideas including Reed Elsevier, WPP and Sage Group. We also builta new position in Lloyds Banking Group after the share price fall that accompanied its 1st quarter interim management statement. Thesepurchases were financed by the disposal of our holding in Scottish & Southern Energy.
Portfolio StructureNet position % of NAVLong Exposure 49.7Short Future Exposure -11.6Short Option Exposure 0.0Cash/Near* 61.9Net 38.1Gross 61.3
Source: SWIP, *Physical cash position at 31/05/2011 was 50.3%. Cash/NearCash includes treasury bills.
Top 10 HoldingsCompany Weighting
%Treasury 0% July 2011 10.7Treasury 0% 08 Aug 2011 7.9Treasury 0% 30 Aug 2011 5.6Reed Elsevier 3.9Royal & Sun Alliance 3.7AstraZeneca 3.5Treasury 0% Jun 2011 3.4Resolution 2.7Centrica 2.0WH Smith 2.0
Source: SWIP
Contact Us
SWIP Sales Team on 0207 203 3333Email: [email protected] all administration queries contact: 0800 33 66 00www.swip.com
The Historic Yield reflects distributions declared over the past twelve months as a percentage of the mid-market price, as at the date shown. It does notinclude the preliminary charge and investors may be subject to tax on their distributions. If the Fund’s expenses were charged to capital, distributions wouldbe increased and the Fund’s capital performance constrained by an equivalent extent. Important Information: Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of factnor should reliance be placed on these views when making investment decisions. The value of the fund can go up and down and investors may not receiveback the money they invested. This publication only contains brief information on the fund. The Fund Prospectus and the Simplified Prospectus providemore detailed information as well as the risks of investing. Both these documents are available on our website www.swip.com or by telephoning 0800 33 6600. This does not constitute an offer or solicitation to anyone in a jurisdiction where such offer is not authorised or lawful. Persons interested in acquiringshares in the funds should inform themselves of, and observe, all relevant laws and regulations.
Issued by Scottish Widows Investment Partnership Limited (SWIP) which is registered in England and Wales, Company No. 794936. Registered Office isat 33 Old Broad Street, London, EC2N 1HZ, UK. Tel: +44 (0)131 655 8500. SWIP is the investment advisor for the SWIP and Scottish Widows fund range.SWIP is authorised and regulated by the Financial Services Authority and is entered on their register under number 193707 (www.fsa.gov.uk). Calls may berecorded and monitored to help improve customer service and for training purposes.
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