The Fund employs a Behavioural Value strategy in order to provide investors with access to a differentiated source of alpha. By identifying opportunities in companies that many other fund managers consider to be uninvestable, the strategy has historically generated returns significantly ahead of the peer group.
The Fund can invest across the UK equity markets, but is typically focused on smaller companies, where reduced institutional interest and patchy research coverage lead to greater price inefficiency. In certain companies and at certain points in the market cycle, this inefficiency can be extreme, and the Fund is well placed to capture these opportunities with a clear philosophy and process developed by the Lead Manager over 16 years. The Lead Manager’s interests are closely aligned with investors in the Fund, by virtue of having 100% of his investable assets in the strategy.
The Fund is managed on a high conviction, benchmark agnostic, ‘best ideas’ basis, typically with 20-30 holdings. In order to ensure that size does not impact on performance, the strategy is capacity constrained. The Fund benefits from having a long-standing investment team, with the Lead Manager and Assistant Manager having first worked together in 2008.
The SVS Dowgate Wealth UK New Economies Fund is available on the following platforms:
Directly through Dowgate Wealth
Morning Star
Fidelity
The Fund looks for turning points in other investors analytical narratives and emotional journeys, typically in the form of Capitulation Events and Narrative Shifts. A Capitulation Event occurs when existing investors are selling for emotional rather than rational reasons. At the extreme ends of the cycle of investor emotions, diversity of opinion collapses, leading to a break-down of the typically efficient auction-based price setting mechanism. In such situations it can be profitable to bet against the crowd. A Narrative Shift is a situation where the dominant narrative driving the valuation of a company alters materially, typically due to a sudden change in the market’s interpretation of the facts.
Each holding in the Fund is a product of several weeks of detailed research including a qualitative and financial analysis of the company, an understanding of the narratives driving the share price, and an assessment of the Approximate Value of the shares. This work provides the investment team with a clear understanding of the risk / reward opportunity, and an exit price for each position.
SVS Dowgate Wealth UK New Economies Fund – Prospectus
KIID – SVS Dowgate Wealth UK New Economies Fund B Class Income
KIID – SVS Dowgate Wealth UK New Economies Fund B Class Accumulation
Monthly Factsheets & Quarterly Commentary
Fund due diligence available through Door Funds – please submit your request via funds@dowgate.co.uk and you will be sent the unique link
A fund is an investment that pools together the money from many individual investors. Fund managers then invest this money in a wide range of shares according to the objective of the fund. Each investor is issued units, which represent a portion of the holdings of the fund. These units can be bought or sold on a daily basis.
Funds are a popular choice with investors because they offer access to a ready-made investment portfolio that is managed by a sector specialist. You get instant access to a diversified portfolio for a much lower cost than purchasing the individual investments yourself and an improved liquidity profile with daily dealing.
Please find our monthly fund factsheets here and Key Investor Information Documents (KIIDs) below:
KIID – SVS Dowgate Wealth UK New Economies Fund B Class Income
KIID – SVS Dowgate Wealth UK New Economies Fund B Class Accumulation
Please find our Prospectus here and Annual Report & Accounts here (coming soon).
Our funds are available by opening an account directly with us, through your Financial Advisor if they manage your investment portfolio or through retail platforms. If your platform is not listed, please submit your enquiry to funds@dowgate.co.uk.
These share classes represent different units of the same fund.