RWC Enhanced Income Fund Fund Aim
Cumulative Performance - Class B GBP
To provide an income and capital return to investors by investing primarily in UK equity securities.
Fund AuM
£276.2m
Team AuM
£3,359.6m
Firm Aum
£10,524.8m
Fund Details Managers
Ian Lance Nick Purves John Teahan 13th October 2010
Launch Date Structure Share Classes Minimum Investment Share Class A Share Class B Share Class R Annual Management Charge Share Class A Share Class B Share Class R Distribution Frequency
Dealing Cut Off Administrator Auditor
1.50% 0.80% 0.80% Quarterly
Fund Codes Sedol B4LYVF0 B41TL44 B4KDSY6 B3Y0CQ6 BJBPXK7 BJBPXL8
Bloomberg RWCEIAA LX RWCEIAI LX RWCEIBA LX RWCEIBI LX RWCEIRS LX RWCGBPD LX
Income Distribution Share Class A GBP Dist. B GBP Dist. R GBP Dist.
110 105 100 95 90 85 Dec 2011
Dec 2013
Dec 2015
Dec 2017
Cumulative Performance (%) 25,000 10,000,000 25,000
13:00 CET Brown Brothers Harriman PricewaterhouseCoopers (LUX)
ISIN LU0542757579 LU0539372507 LU0542757652 LU0539372689 LU1017299584 LU1017299824
140 135 130 125 120 115
UCITS IV Lux SICAV GBP
XD Dates 31 Mar, 30 Jun, 29 Sep, 29 Dec Pay Dates 13 Apr, 13 Jul, 12 Oct, 12 Jan Dealing - Subscriptions Daily Dealing - Redemptions Daily
Share Class A GBP A GBP Dist. B GBP B GBP Dist. R GBP R GBP Dist.
29th December 2017
Period Q4 Q4 Q4
Dist per share £1.06 £1.13 £1.09
Additional Share Class NAV & Performance Share Class A GBP
NAV 126.13
1 Month (%) 1.30
YTD (%) 2.23
A GBP Dist. B GBP B GBP Dist. R GBP
77.73 133.47 82.34 129.65
1.30 1.37 1.37 1.36
2.23 3.04 3.04 3.01
R GBP Dist.
80.04
1.37
3.00
B GBP FTSE All Share TR
NAV per Share 133.47 -
1M 1.37 4.78
3M 0.57 4.96
YTD 3.04 13.10
1Y 3.04 13.10
3Y 11.87 33.34
5Y 29.75 62.98
SI 33.47 85.86
Discrete Monthly Performance - Class B GBP (%) 2017 2016 2015
Jan -1.54 1.20 2.06
Feb 2.73 -0.29 0.03
Mar 0.71 -1.06 0.41
Apr -1.69 -0.83 -0.12
May 3.31 1.12 0.51
Jun -1.43 3.09 -3.17
Jul 0.14 1.52 2.78
Aug 1.43 0.47 -2.39
Sep -1.10 1.10 -1.48
Oct 0.47 0.54 1.61
Nov -1.25 -2.48 0.69
Dec 1.37 3.18 0.08
Year 3.04 7.68 0.83
Historic Annual Returns (%) 2010 -3.09
2011 -4.41
2012 11.05
2013 12.59
2014 3.01
Commentary December saw another good month for equity returns, capping off what has been a strong year for the asset class. The S&P 500 rose 1.1% in December, ending the year with a positive return for each month in 2017. The Euro Stoxx 600 TR rose 1.6%, and the FTSE All-Share TR 4.8%, led by the more international FTSE 100. The Fund rose 1.4% in December, although underperformed the benchmark. Relative to the benchmark, the Fund underperformed due to no exposure to Materials, and being underweight Financials. The largest contributor to performance was BP, contributing 0.35%. Energy was the best performing sector for the Fund, contributing 0.60% to performance. Oil prices have been strong in the second half of the year, with Brent oil up 16% for the year. We have added to the fund’s holdings in the oil sector within the last 6 months. Sky also performed well, contributing 0.28% to performance, as its share price was up 8% during the month as The Walt Disney Company announced its intent to acquire 21st Century Fox, with Disney saying they want to own all of Sky. The biggest detractor from performance was KDDI, a Japanese telecommunication company, which detracted 0.30%. KDDI’s share price fell almost 13% in December following news that Rakuten plans to become Japan’s fourth major mobile-phone operator. The covered call overlay strategy was a slight detractor in December, detracting -0.09% from performance. The put protection strategy detracted -0.18% from performance as equity markets remained strong.
Past performance is not a guide to the future. The price of investments and the income from them may fall as well as rise and investors may not get back the full amount invested. Total Fund returns are calculated on a NAV-NAV basis net income reinvested and are shown net of all fees. Source: RWC, FTSE
RWC Partners Limited - 60 Petty France, London SW1H 9EU t. +44 (0)20 7227 6000 f. +44 (0)20 7227 6003 e.
[email protected] www.rwcpartners.com
Authorised and regulated by the Financial Conduct Authority
RWC Enhanced Income Fund Exposure Summary (%)
29th December 2017
Geographic Breakdown (%)
Equities Cash† Call Options
83.8 16.3 -0.4
Index Put Options
0.3
United Kingdom North America Europe ex UK
Top Ten Long Positions (%)
Asia
Royal Dutch Shell BP Unilever GlaxoSmithKline
5.6 5.6 4.2 4.2
Sky Microsoft RELX
3.9 3.6 3.1
HSBC Johnson & Johnson
3.1 2.9
General Retailers
Vodafone
2.9
Industrial Goods & Services
0
10
20
30
40
50
60
Sector Breakdown (%) Health Care Oil & Gas Media
Mobile Telecommunications
Security Breakdown
Food & Drug Retailers
Total No. of Securities Held Top Ten Position Concentration* (%) No. of Securities not covered by Call Options
33 39.0 4
Free Cash Flow Yield
Software & Computer Services Banks Fixed Line Telecommunications
Financial Ratios Dividend Yield*** P/E Ratio (FY1) P/Book Value
Personal & Household Goods
Fund 5.8 16.7 2.4
Index 3.5 -
6.1
-
Nonlife Insurance Utilities Food & Beverage Technology Hardware & Equipment Life Insurance 0
5
10
15
20
Market Cap Breakdown (% of NAV) > £2.5bn £0.5bn - £2.5bn < £0.5bn
100.0 0.0 0.0
Attribution by Sector (bps) Oil & Gas Retail
Statistical Analysis Volatility Sharpe Ratio Sortino Ratio Largest drawdown (%) Beta
Health Care
Fund 10.3 0.4 0.5 -18.43
Index 14.6 0.6 0.8 -18.7
0.5
-
Media Banks Insurance Food & Beverage Industrial Goods & Services Technology Financial Services Personal & Household Goods Utilities Telecommunications Residual** -40
-20
0
20
40
60
80
†Cash includes short dated government bonds. *Percentage of NAV. **Includes all non equity instrument types. Excludes swing factor. ***Dividend yield based on trailing 12 month distributions divided by the latest NAV. Source: FactSet (using ICB Sector Classifications via FTSE)
Disclaimer This document is directed only at persons that qualify as Professional Clients or Eligible Counterparties under the FCA rules. It is not intended for distribution to Retail Clients. The Fund is a sub-fund of RWC Funds SICAV, an open-ended investment company with variable share capital organised under the laws of Luxembourg. This document is not a solicitation or an offer to buy or sell any fund or other investment and is issued in the UK by RWC Partners Limited. This document does not constitute investment, legal or tax advice and expresses no views as to the suitability or appropriateness of any investment and is provided for information purposes only. The views expressed in the commentary are those of the investment team. No person may distribute, copy or publish this document or any of its contents, in whole or in part, for any purpose, without the express, prior written permission of RWC Partners Limited and only in jurisdictions and to investors where it is legally permissible to do so. The representative and paying agent of the RWC-managed funds in Switzerland (the “Representative in Switzerland”) is Société Générale, Paris, Zurich Branch, Talacker 50, P.O. Box 5070, CH-8021 Zurich. In respect of the units of the RWC-managed funds distributed in Switzerland, the place of performance and jurisdiction is at the registered office of the Representative in Switzerland. Past performance is not a reliable indicator of future performance and the value of investments and the income from them may fall as well as rise. An investor may not be able to get back the amount invested and could lose all of their investment. The risks of investment are detailed in the prospectus and should be considered in conjunction with your investment adviser. The prospectus, Key Investor Information Document, other constitutional documents as well as annual and semi-annual reports of RWC Funds are available free of charge on request from RWC Partners Limited. Issued by RWC Partners Limited.
RWC Partners Limited - 60 Petty France, London SW1H 9EU t. +44 (0)20 7227 6000 f. +44 (0)20 7227 6003 e.
[email protected] www.rwcpartners.com
Authorised and regulated by the Financial Conduct Authority
