WS EkinsGuinness Dynamic Growth Fund
Overview
Summary
- Dynamic asset allocation between equities, bonds, commodities and cash
- Aim is to capture equity market upside in bull markets but to reduce drawdowns (peak to trough falls) in bear markets
- All exposure achieved through Exchange Traded Funds which have low costs and low dealing charges
- Avoids style bias – both asset allocation and equity focus change according to market conditions
- Suitable as a potential diversifier within a broader portfolio due to generally low correlation and lower volatility than Equities
- Can also be a core holding for investors who prefer not to make asset allocation changes themselves
Investment Approach
The two most important drivers for investment decisions are fundamental value and market trends. Fundamental value determines the potential over the medium/long term but can be a poor indicator of price movements in the short term. Market trends (including momentum and overbought signals) can be a good leading indicator of future price movements but can be dangerous if fundamental value is ignored. Neither analytic should be used in isolation but it is logical to select investments based objectively according to a combination of fundamental value and market trends which are independent of opinion, forecasts and emotion.
Performance
(as at 30 April 2024)
Performance shown is the total return (net of fees & costs) for the Accumulation B share class. Inception date was 12 July 2017. The Fund is not managed against any benchmark. The Investment Association Flexible Sector and UK Consumer Price Inflation are shown as Comparator benchmarks as per FCA PS 19-04. The IA Flexible Sector contains a wide array of funds with a flexible mandate, hence the comparator, but many of them have different investment objectives and profiles. Past performance is not a reliable indicator of future performance. Source: Ekins Guinness LLP.
Key Facts
Structure & Administration
| Structure |
UCITS / ISA |
Authorised Corporate Director |
Depositary | Custodian | Auditor |
Income / Accumulation |
Dividend Payment Dates |
Valuation & Cut Off |
Comparator Benchmark |
|---|---|---|---|---|---|---|---|---|---|
|
UK Authorised OEIC |
Yes |
Waystone Financial Services |
BNY Mellon |
BNY Mellon |
Cooper Parry |
Both |
31 January & 31 July |
12 noon daily |
MSCI World Index |
Share Classes
| Share Class |
Minimum Holding |
Managment & Administration Fee |
Ongoing Charges Figure |
ISIN | SEDOL |
|---|---|---|---|---|---|
|
Z Accumulation GBP |
£200,000 |
0.45% |
0.60% |
GB00BLFFGD12 |
BLFFGD1 |
|
Z Income GBP |
£200,000 |
0.45% |
0.60% |
GB00BLFFGC05 |
BLFFGC0 |
|
B Accumulation GBP |
£5,000 |
0.70% |
0.85% |
GB00BD8YW428 |
BD8YW42 |
|
B Income GBP |
£5,000 |
0.70% |
0.85% |
GB00BD8YW758 |
BD8YW75 |
Managers
Charles Ekins
Charles is the founder and Chief Executive of Ekins Guinness LLP. Previously he was Chief Investment Officer at Valu-Trac Investment Management, prior to which he spent 19 years at Morgan Grenfell (Deutsche) Asset Management where he was a portfolio manager, member of the Investment Policy Committee and client director. He read Maths with Computing Science at Bristol University and has an MBA from the City University Business School. Charles is a Director of the Herald Worldwide Technology Fund (Dublin OEIC).
Jasper Falk
Jasper has over 20 years experience in Investment Banking. He established and managed JPMorgan’s Global Inflation trading business which assisted Pension Funds and Asset Manager clients in hedging and managing their liabilities. He was also a member of the Fixed Income Management Committee. Jasper read Engineering and Management Studies at St Catharine’s College Cambridge, and holds the Financial Times Non-Executive Director Diploma.
Holdings
(as at 30 April 2024)
Portfolio Holdings
Equity Analysis
Investment Commentary
as at 30 April 2024
as at 31 December 2023
The Fund fell 1.7% in April 2024 which gives a return year-to-date of 8.2%. Since launch (12 July 2017) the Fund has returned 45.1% (net of fees and costs), which compares with 35.6% from the Investment Association (IA) Flexible Sector which is a comparator benchmark.
Against the IA Flexible Sector, the Fund is in the 1st quartile over 1 and 3 years, and in the second quartile over 5 years and since inception. Looking more broadly, against all 617 funds in the four IA Mixed Asset sectors (Flexible, 0-35% Shares, 20-60% Shares & 40-85% Shares) the Fund is in the 1st quartile over 1, 3 and 5 years.
World equities fell 3.2% in local price terms during March, which equates to -2.9% in GBP terms. The UK equity market performed well (+2.5%) while the NASDAQ fell over 4%. Gilts and US Treasuries both fell 3%, and Gold rose 4%.
There has been significant sector rotation within the global equity market. In April, the more defensive Sectors outperformed, such as Utilities (+1.7% in GBP terms) and Consumer Staples (-0.4%). Energy (+1.2%) also continued to perform well. By contrast the growth sectors such as Technology (-4.9%) and Consumer Discretionary (-4.0%) underperformed.
As introduced in last month’s factsheet, the Fund has continued to move to a more defensive position. The Equity allocation has been reduced to 52%, and the 14% Gold allocation has been supplemented with a 9% allocation to a Commodity basket. The Fund now has 19% in short dated US Treasuries.
The main reason for being more cautious now is that Equity Value Yield, after such a strong run in Equities since last November, has fallen to levels which are fairly low by historical standards. This slight valuation concern coincided with a modest correction in Equities in April, which is not always a good combination. In early May Equity markets have recovered well but the valuation concern is still there. There are similarities with late 2021 and last summer, both of which led to a tougher period for Equities. Our model is likely to remain somewhat cautious until the picture becomes clearer.
Both Gold and Commodities are in a bull market, and offer diversification to an increasingly expensive Equity market. Whether the need for this diversification is temporary or for longer will depend on how markets pan out in coming months.
Documents
Specific to WS Enigma Dynamic Growth Fund
Specific to Fund Umbrella
Links to external sites
Umbrella Documents
Reports
How to Invest
via Platforms
Directly
The WS Enigma Dynamic Growth Fund is available on the following platforms:
| Allfunds | Aegon | AJ Bell | Alliance Trust |
|---|---|---|---|
|
Ascentric |
Aviva |
Barclays |
FNZ |
|
Hargreaves Lansdown |
Interactive Investor |
Novia |
Nucleus |
|
Pershing |
Transact |
Zurich |
|
Contact Ekins Guinness LLP
- Call 01264 738989
- Link to Application Forms