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Managed Funds

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Hawksmoor Fund Managers (HFM) offer three funds, the MI Hawksmoor Vanbrugh Fund, the MI Hawksmoor Distribution Fund and the MI Hawksmoor Global Opportunities Fund, all of which are intended to be core holdings in your portfolio.

 

The Vanbrugh Fund is designed for investors seeking a total return with an emphasis on capital growth whilst seeking to limit losses in the short term. Meanwhile the primary aim of the Distribution Fund is to deliver an attractive level of income, recognising that this may require a relatively higher level of risk to achieve this. The Global Opportunities Fund also strives to achieve capital growth but with a much higher tolerance for risk, hence the much longer investment horizon required.

 

All funds are managed with a multi-asset, fund-of-funds based approach using collective investments, including investment trusts, to gain access to opportunities across a broad range of asset classes.

 

The latest prices for the Vanbrugh Fund can be found here, for the Distribution Fund can be found here and for the Global Opportunities Fund can be found here.

The Vanbrugh Fund

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Launched in February 2009, the Vanbrugh Fund’s primary aim is to deliver returns, after charges, in excess of CPI over the medium term (defined as rolling periods of 3-5 years). In striving to achieve this target, the managers seek to strike the right balance between the need to generate positive real returns and preserve capital by investing in a variety of financial assets, which can be volatile. The managers will seek to mitigate against this volatility by ensuring a diversified portfolio of assets, each of which share the common characteristics of a margin of safety and low intra-asset correlations. However, you may see fluctuation in the value of your investment over the short-term, so you need to share the manager’s long-term perspective in order to increase the likelihood of superior long-term total returns. Whilst there is no yield target, the Fund will always contain an allocation to bonds and other income producing assets, so some income generation is likely.

 

As a constituent of the Investment Association’s Mixed Investment 20-60% Shares Sector, the Fund will at all times have a maximum of 60% allocated to equities and a minimum of 30% in fixed interest and cash. The Fund is designed to have broad appeal, and to be a core long-term investment for those seeking actively managed exposure to financial markets.

Vanbrugh Chart November 2018

The Distribution Fund

Launched in April 2012, the Distribution Fund’s primary aim is to deliver an attractive level of income. In doing this, the managers will aim to ensure the Fund’s yield will always be at a premium to a composite index of financial asset classes (equities, bonds, property and cash). The intention is to increase the distribution alongside an increase in capital growth in order to maintain an attractive distribution yield for new and existing investors. Therefore, you should expect to receive a total return on your investment that will be somewhat correlated to financial markets given the Fund’s fully invested, albeit diversified, portfolio.

 

As a constituent of the Investment Association’s Mixed Investment 40-85% Shares Sector, the Fund will at all times have a minimum of 40% and a maximum of 85% in equities. The Fund is designed to have broad appeal, and to be a core long-term investment for those seeking actively managed exposure to financial markets with income as a priority.

Distribution Chart November 2018

Source: Financial Express Analytics. GBP total return, C Acc units (performance history extended where required).

The Global Opportunities Fund

Launched in September 2018, in response to demand from existing investors in our Vanbrugh and Distribution Funds, the Global Opportunities Fund applies the same award-winning investment process but will target investors with a higher tolerance for risk. Using the same universe of collectives (both open and closed ended) the Fund will invest in long term structural growth themes and exploit inefficiencies in the closed ended sector – primarily investment trusts trading at discounts. The Fund’s primary aim is to deliver returns, after charges, in excess of general markets over the long term (defined as rolling periods of 5+ years). The portfolio will be fully invested and whilst diversified, it will have a minimum exposure to equities of 60%.

 

The Fund will sit in the Investment Association Flexible Investment Sector, giving the managers maximum flexibility over asset allocation. It is likely that investors will see fluctuations in the value of their investment over the short term, so they need to share the managers’ long term perspective in order to increase the likelihood of superior long term total returns.

Asset Allocation

The MI Hawksmoor Global Opportunities Fund is a fund-of-funds which will invest in collectives (open and closed ended funds) in order to be diversified across a range of different asset classes, such as equities, bonds, property and commodities, and a range of geographical regions*

* Indicative portfolio as at September 2018