On paper, SWIP Multi-Manager Diversity's mandate is not very stretching. Its goal is to achieve long-term capital growth in excess of the UK Consumer Price Index, which has been low recently. So it's met that target easily; the fund's net asset value (NAV) has grown by 15.8 per cent since last November, which includes positive returns over the third quarter, with an average return of 2.73 per cent in the three months to the end of September.
This is just shy of the Cautious Managed sector average, but it's healthy enough given a modest exposure to equity markets at the beginning of the period - a stance designed to protect the fund if markets went into reverse.
However, the cash component was reduced significantly (12.2 per cent) over the third quarter, as the managers sought to exploit the FTSE's rise, together with renewed interest in the commercial property sector. The latter position, via the SWIP Property trust, represents the managers' first foray into the sector in two years.
Multi-manager Diversity was launched in 2007 to meet the demand for more flexible, broad-based investment vehicles, and has been co-managed by Mark Harries and Simon Wood since inception.
| PRICE | 100.4p | SHARPE RATIO | na |
| SIZE OF FUND: | £66m | 3 MONTH PERFORMANCE | 3.03%* |
| No OF HOLDINGS: | 22 | 6 MONTH PERFORMANCE | 8.28%* |
| SET UP DATE | 20 December 2007 | 1 YEAR PERFORMANCE | 14.1%* |
| MANAGER START DATE | 20 December 2007 | TOTAL EXPENSE RATIO | 1.81%* |
| INITIAL CHARGE | 5.00% | YIELD | 1.10% |
| MANAGEMENT FEE | 1.25% | MINIMUM INVESTMENT | £1,000 initial £1,000 additional |
| TRACKING ERROR | na | MORE DETAILS | swip.com |
Source: Scottish Widows Inv. & *Morningstar (11/11/09)
Top ten holdings
| Holding | Percentage |
|---|---|
| Pimco Funds Global | 9.34 |
| M&G Optimal Income I Inc | 9.31 |
| BH Macro | 8.72 |
| CF Odey Opus | 8.33 |
| JB BF Absolute Return A GBP | 7.54 |
| IP Income Inc | 6.40 |
| GAM UK Diversified Inc | 6.11 |
| Polar Capital UK Absolute Return | 5.51 |
| Schroder Alt Sol Com C GBP Hdg | 5.40 |
| Gartmore European Absolute Return | 4.93 |
Sector breakdown
| Asset Allocation | Percentage |
|---|---|
| Equities | 38.6 |
| Hedge | 17.8 |
| Strategic Bonds | 17.7 |
| Absolute Return Bonds | 7.9 |
| Commodities | 5.9 |
| Cash | 5.7 |
| Other | 6.4 |
