Rathbone Recovery Fund to be renamed Rathbone UK Opportunities Fund

Fund’s AMC lowered to 0.45% for limited period

Rathbone Unit Trust Management Ltd (Rathbones) confirms that the Rathbone Recovery Fund (the fund) is to be renamed the Rathbone UK Opportunities Fund. 

This change, which takes effect from 23 October 2017, reflects a revision to the fund’s objective which removes reference to the word ‘recovery’. Otherwise, the fund’s objective continues to specify a focus on identifying companies, primarily in the UK, where the manager believes there is a catalyst for the creation of value. In addition, Rathbones is lowering the fund’s annual management charge (AMC) from 0.75% to 0.45% for I-class units. This change also takes effect from 23 October 2017. It is Rathbones’ intention to review this position after a period of three years or until the fund’s assets under management reach £250m. Those investors wishing to take advantage of the lower AMC would not be subject to an increase in AMC on review; instead, Rathbones would close the I-class shares to further investments and launch a new one.

At the same time, Rathbones confirms that Jo Rands, the fund’s co-manager, alongside Alexandra Jackson, is to leave the company to pursue interests outside the investment industry. While Rathbones intends to appoint a dedicated investment professional to work alongside Alexandra, she will continue to be supported by Rathbones’ research team as sole manager of the fund.

The Rathbone UK Opportunities Fund will follow the same investment process put in place by Alexandra and Jo on assuming the fund’s management in 2014. Alexandra will continue to seek capital growth by investing in, principally, UK stocks across all market capitalisations. The aim is to uncover companies whose full potential remains unrecognised by the market and to sell them once that potential is realised. The nature of this may be macro, industry, sector or stock specific. The fund’s benchmark remains the FTSE All-Share.

Commenting on these changes, Mike Webb, chief executive of Rathbone Unit Trust Management Ltd, said:“As part of our ongoing review of our investment proposition and in light of discussions with advisers, it has become apparent that the term ‘recovery investing’ has become increasingly ambiguous with the definition of ‘recovery’ now applied too widely to be meaningful to investors. Fund managers frequently refer to differing characteristics when applying the term ‘recovery’ and their mandates may embody varying investment styles and risk profiles. We have always sought to describe our investment propositions as lucidly as possible, and so have taken the step of renaming the Rathbone Recovery Fund to Rathbone UK Opportunities Fund. In doing so, we aim to give potential investors a much clearer impression of what they can expect from the fund."

“The fund has just achieved a three-year track record under Jo and Alexandra, and, therefore, we believe it will be compelling to a much wider group of investors. Coupled with these changes, we are lowering the fund’s AMC to 0.45% to encourage greater consideration.

“Alexandra will continue to manage the fund, using the existing investment process, to build upon its track record and ensure continuity for existing unit-holders. We wish Jo all the very best for the future, and thank her for her contribution to the management of the fund.” 

For more information, please contact:

Madhu Kalia
Intermediary PR (UK/Europe)
Rathbone Unit Trust Management
020 7399 0256
07825 596302
madhu.kalia@rathbones.com

Hugo Mortimer-Harvey
Quill PR
020 7466 5056
hugo@quillpr.com

Sam Emery
Quill PR
020 7466 5056/5054
sam@quillpr.com

Note to editors

The current and new investment objectives of the fund are shown below for comparison:

Current investment objective:
“The objective of the fund is to achieve capital growth by buying shares in companies whose recovery potential is not appreciated by the market and to sell them when this potential is recognised. The nature of unrecognised recovery potential may be based on macroeconomic, industry, sector specific or stock specific issues. Stock selection will involve the identification of a catalyst capable of triggering and sustaining a recovery in each specific stock selection. The fund has the flexibility to invest in companies of all sizes and to hold up to 20% in European shares; it will be benchmarked against the FTSE All-Share index.”

New investment objective:
“The objective of the fund is to achieve capital growth by buying shares in companies whose potential is not appreciated by the market and to sell them when this potential is recognised. The nature of unrecognised potential may be macro, industry, sector or stock specific. Stock selection will involve the identification of a catalyst to drive value creation. The fund has the flexibility to invest in companies of all sizes, primarily companies domiciled, incorporated or having a significant part of their business in the UK, although it may hold up to 20% in shares of European companies. It is benchmarked against the FTSE All-Share index.”

Alexandra Jackson, fund manager
Alexandra has been co-manager of the Rathbone Recovery Fund since June 2014. She was previously assistant fund manager on the Rathbone Global Opportunities Fund. She joined Rathbones in January 2007, having graduated from the University of Durham (University College) with a BA Hons in Economics. Alexandra also holds the Investment Management Certificate and is a CFA charter-holder.

Rathbones Group Plc
Rathbones Group Plc (Rathbones), through its subsidiaries, is one of the UK’s leading providers of investment management services for individuals, charities and professional advisers. This includes discretionary investment management, unit trusts, tax planning, trust and company management, financial advice and banking services. Rathbones manages £36.6bn of assets (as at 30 June 2017). This includes £4.6bn run by Rathbone Unit Trust Management. Rathbones has over 1,100 staff in 16 locations across the UK and Jersey. Rathbone Investment Management Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Port of Liverpool Building, Pier Head, Liverpool L3 1NW. Registered in England No. 1448919. Rathbone Investment Management Limited is part of Rathbones Group Plc. Head office 8 Finsbury Circus London EC2M 7AZ.

This is a financial promotion, relating to a particular fund or service. Any views and opinion are those of the investment managers, and coverage of any assets held must be taken in the constitution of the funds and in no way reflect an investment recommendation. The information contained in this note is for use by investment advisers and journalists and must not be circulated to the private clients or to the general public. Source performance data, Financial Express (FE), bid to bid, net income reinvested. Past performance should not be seen as an indication of future performance. The value of investments and the income from them may go down as well as up and you may not get back your original investment.