Objective & Investment Policy

What the Company aims to achieve and the approach taken

Investment objective

 

The Company’s objective is to provide Shareholders with an attractive real long-term total return by investing globally in undervalued asset classes. The portfolio is managed without reference to the composition of any stock market index.

Investment policy

The Company invests in a range of assets across both public and private markets throughout the world. These assets include both listed and unquoted securities, investments and interests in other investment companies and investment funds (including limited partnerships and offshore funds) as well as bonds (including index-linked securities) and cash as appropriate.

Any single investment in the Company’s portfolio may not exceed 15 per cent. of the Company’s total assets at the time of the relevant investment (the “Single Investment Limit”).

The Company may invest in other investment companies or funds and may appoint one or more sub-advisors to manage a portion of the portfolio if, in either case, the Board believes that doing so will provide access to specialist knowledge that is expected to enhance returns. The Company will gain exposure to private markets directly and indirectly through investment and interest in other investment companies and investment funds (including limited partnerships and offshore funds). The Company’s investment directly and indirectly in private markets (including through investment companies and investment funds) shall not, in aggregate, exceed 30 per cent. of the Company’s total assets, calculated at the time of the relevant investment.

The Company will invest no more than 15 per cent. of its total assets in other closed-ended listed investment companies (including investment trusts).

The Company may also invest up to 50 per cent. of its total assets in bonds, debt instruments, cash or cash equivalents when the Board believes extraordinary market or economic conditions make equity investment unattractive or while seeking appropriate investment opportunities for the portfolio or to maintain liquidity. The Single Investment Limit does not apply to cash or cash equivalents in such circumstances. In addition, the Company may purchase derivatives for the purposes of efficient portfolio management.

From time to time, when deemed appropriate and only where permitted in accordance with the UK Alternative Fund Managers Regulations 2013, the Company may borrow for investment purposes up to the equivalent of 25 per cent. of its total assets. By contrast, the Company’s portfolio may from time to time have substantial holdings of debt instruments, cash or short-term deposits.

The investment objective and policy are intended to ensure that the Company has the flexibility to seek out value across asset classes rather than being constrained by a relatively narrow investment objective. The objective and policy allow the Company to be constrained in its investment selection only by valuation and to be pragmatic in portfolio construction by only investing in assets which the Board considers to be undervalued on an absolute basis.

The value of the shares and any income derived from them can fall as well as rise, and investors may not get back the full value of their investment.

FAQs

There is no target but as the Investment Manager is a long term investors, turnover tends to be relatively low.

Please refer to the monthly factsheet for the most up-to-date figure.

Active Share is the measure of the percentage of the holdings in the company's portfolio that differs from the value of the shares in the index.

An Active Share of 0% would be a portfolio that exactly matches the index.

As the Investment Manager follows an investment approach not constrained by a benchmark it tends to be high.

Please refer to the monthly factsheet for the most up-to-date figure.

The company is managed without reference to a benchmark. There is no measurable tracking error.

EP Global Opportunities Trust has no formal cash limit.