Style Research Profile

Style Research Fund Profiles are based on analysis of the current and past holdings of each fund's portfolio of investments and show key characteristics of investment Style, Structure, Risk, Diversification and Performance. The analysis is presented relative to the total market as well as against the peer group made up of each fund's regional competitors.

 

Style Skyline

The Style Skyline shows fund Tilts with respect to the important basic Styles: Value, Growth, Momentum, Ethical criteria, Gearing and Export Focus. Value criteria include both stock and flow measures; Growth includes both past/current and forecast growth; Momentum is based on short term and medium term measures; and, Ethical factors include environmental, social responsibility and corporate governance measures. Built up from analysis of securities held, each Tilt bar measures the difference between fund and market score on each factor. In the example, the fund has a significantly higher average dividend yield than the market and significantly lower growth attributes, especially forecast growth. The fund holds cheap, high income, stocks rather than stocks with ambitious expectations for future earnings growth.

Historical Skyline

The Historical Skyline™ shows the range of a fund's Style Tilts over the past 3 years. The chart also shows the current distribution of Tilts of all funds with the same region of investments. This fund has a dividend yield Tilt consistently in the top 5% outliers of its peer group.

Risk Measures

Risk Measures show the range of a fund's risk statistics over the past 3 years. The chart also shows the current distribution of risk statistics of all funds in the peer group with the same investment region. Tracking Error measures anticipated risk; Portfolio Beta measures volatility against the market; Portfolio Volatility measures volatility against cash; Number of Stocks is just that; Effective Number of Stocks measures the concentration of investments; and Coverage is the weighted overlap of the fund with the market and measures diversification.

Tracking Variance Decomposition

Tracking Variance is the square of Tracking Error and its decomposition reveals where a fund manager is taking the largest risks: stock selection, Style allocation, sector allocation or market allocation. The analysis takes into account active positions as well as the historic performance characteristics of individual securities. This fund has more sector risk than Style and stock risk, indicating a "top down" investment approach.

Fund Performance

Fund Performance data are based on NAV figures and are quoted gross of income tax and without any purchasing or selling fees. Fund performance and performance of the market, consisting of all equity securities in the investment region, are quoted over 1, 3, 6, 12 and 36 months

Market Cap Distributions

Market Cap Distributions show "where the money is" within 5 size categories of securities. Mega Cap, Large, Mid Cap, Small and Micro are defined as the top 40%, next 30%, next 20%, next 9% and bottom 1% of the market. The distribution of a fund's investments is shown against the distribution of the holdings the peer group median.

Style Distributions

Style Distributions show "where the money is" within 6 basic categories of securities. Large, Mid Cap and Small are defined as the top 70%, next 20% and bottom 10% of the market; and within each tranche, Value and Growth are defined by a composite of Book/Price, Dividend Yield and Forecast Earnings Yield.

Industrial Sector Skylines

Industrial Sector Skylines™ show "where the money is" within the 10 major economic sectors as defined by the ICB and FTSE. The distribution of a fund's investments is shown against the distribution of the holdings of the peer group median and against the size of each sector in the market.

Risk Diversification

Risk Diversification shows the position of the fund within its peer group with respect to ex ante Tracking Error and Coverage of the market. Ex anteTracking Error measures the forward looking risk of a fund against the market while Coverage, defined as the weighted overlap of the fund with the market, measures diversification. Tracker and passive funds are to the right while small cap and specialist funds are generally to the left.