BSF UK Emerging Companies Absolute Return Fund

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

 


Positive absolute returns

Targeting uncorrelated positive returns
This fund aims to generate a targeted rate of growth but the manager cannot guarantee that the intended target rate will be achieved. In addition, over time the target rate is subject to change at the Manager’s discretion. 

Less than ½

Taking less than half the risk of the UK equity market

Proven and compelling

A proven and compelling investment philosophy focusing on quality differentials and industry change

Positive absolute returns

Targeting uncorrelated positive returns
This fund aims to generate a targeted rate of growth but the manager cannot guarantee that the intended target rate will be achieved. In addition, over time the target rate is subject to change at the Manager’s discretion.

Less than ½

Taking less than half the risk of the UK equity market

Proven and compelling

A proven and compelling investment philosophy focusing on quality differentials and industry change

Key Features 

Identifying emerging companies across an exciting and diverse universe


Identifying emerging companies across an exciting and diverse universe

We view ‘emerging’ through the company’s actions and prospects, regardless of its size or geography. This is a universe which has a high dispersion of returns where winners can multiply and losers can go bust. The fund is able to invest up to 30% internationally.

RISK: There is no guarantee that a positive investment outcome will be achieved from the stated investment universe.

A unique investment philosophy and process


A unique investment philosophy and process

The Fund’s philosophy exploits opportunities from ‘differentiated companies’ and ‘industry change’. We want to own differentiated companies often with low market share in global markets, and/or the companies driving industry change. We look to short the ‘legacy incumbents’, the companies and industries that are left behind or being actively disrupted.

RISK: Diversification and asset allocation may not fully protect you from market risk.

Aims to deliver attractive and uncorrelated returns


Aims to deliver attractive and uncorrelated returns

The Fund aims to deliver annualised returns with limited correlation to global equity and bond markets. Success or failure in emerging companies can be independent of the economic cycle.

RISK: There is no guarantee that the targeted positive investment outcome will be achieved.

Risks

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. You may not get back the amount originally invested. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Fund-specific risks

Long / Short Fund (equity) - The Fund uses derivatives as part of its investment strategy including the establishment of both ‘long’ and ‘synthetic short’ positions and the creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. This use of derivatives may increase the overall risk profile of the Fund. The value of this Fund does not typically move in line with general market trends and is not expected to reap the full benefits of a rising stock market. Investment strategies employed by the manager may affect the risk profile of the fund, as both positive and negative share movements affect the overall value of the Fund.

Smaller company investments - Smaller company investments are often associated with greater investment risk than those of larger company shares.

Complex derivative techniques (absolute return) - The strategies utilised by the Fund involve the use of derivatives to facilitate certain investment management techniques including the establishment of both 'long' and 'synthetic short' positions and creation of market leverage for the purposes of increasing the economic exposure of a Fund beyond the value of its net assets. The use of derivatives in this manner may have the effect of increasing the overall risk profile of the Funds. Investors in this fund should understand that the Fund is not guaranteed to produce a positive return and as an absolute return product, performance may not move in line with general stock market trends as both positive and negative share movements affect the overall value of the fund. The Manager employs a risk management process to oversee and manage derivative exposure within the Fund.

Financial Markets, Counterparties and Service Providers - The Fund may be exposed to finance sector companies, as a service provider or as counterparty for financial contracts. Liquidity in the financial markets has been severely restricted, causing a number of firms to withdrawn from the market, or in some extreme cases, becoming insolvent. This may have an adverse effect on the activities of the fund.

Liquidity Risk - The Fund’s investments may have low liquidity which often causes the value of these investments to be less predictable. In extreme cases, the Fund may not be able to realise the investment at the latest market price or at a price considered fair.

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