Value is more than a number …
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The Income Opportunities Fund is an actively managed portfolio primarily comprising global equities but also with the flexibility to invest in assets which display good value and generate income.
The Portfolio Managers follow Setanta's value investment philosophy, seeking to pick stocks at a price below the managers’ assessment of intrinsic value. The Fund further distils this philosophy by targeting stocks where management have both the willingness and ability to distribute meaningful dividends to shareholders.
While the Fund does not target specific regional or sector weights, the managers seek to maintain a sensible level of diversification. Risk is minimised by focusing on valuation, financial and operational risk measures and therefore the degree of downside protection, rather than focusing on measures of market volatility or beta. The Fund usually holds between 35 to 45 stocks with expected holding period of up to 5 years. While investment in attractively valued high yield equities (overwritten with call options) will be the primary strategy employed in the Fund, the Portfolio Managers seek long-term higher yielding value opportunities in other asset classes.
The covered option overwriting strategy employed is active and at all times maintains a focus on total return.
The Income Opportunities Fund has two investment objectives: 1. To generate income at a target rate. (Declared annually at beginning of year). 2. To grow real capital value over the long term
| 1 month | YTD | 1 Year | 3 Year p.a. | 5 Year p.a. | 10 Year p.a. | |
| Fund | 3.0% | -1.0% | -1.0% | 11.8% | -1.1% | N/A |
| Benchmark | 0.3% | 2.8% | 2.8% | 2.0% | 2.1% | N/A |
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Fund | N/A | -7.2% | -27.2% | 21.1% | 16.6% | -1.0% |
| Benchmark | N/A | 3.1% | 1.6% | 0.9% | 2.2% | 2.8% |
| Company | Sector | % of Fund |
| UNITED UTILITIES | Telecoms & Utilities | 2.7% |
| TOTAL | Energy | 2.6% |
| BP | Energy | 2.5% |
| ENI | Energy | 2.4% |
| BELGACOM | Telecoms & Utilities | 2.4% |
| CRH | Industrials & Materials | 2.3% |
| OSTERREICHISCHE POST | Industrials & Materials | 2.3% |
| KIMBERLY-CLARK | Consumer Staples | 2.3% |
| TELE2 | Telecoms & Utilities | 2.0% |
| SYSCO | Consumer Staples | 2.0% |
| Sector Name | Fund Weight |
| Consumer Discretionary | 5.1% |
| Consumer Staples | 8.6% |
| Energy | 14.2% |
| Financials | 11.0% |
| Healthcare | 15.1% |
| Industrials & Materials | 16.6% |
| Information Technology | 6.7% |
| Telecoms & Utilities | 22.6% |
| Assets | Fund Weight |
| Equities | 70.7% |
| Fixed Interest | 12.9% |
| Cash | 16.4% |
Paul McNulty, CFA has been with Setanta since 2000, having spent just under two years with PricewaterhouseCoopers as a consultant. He is a dedicated proponent of the value investment philosophy and continues to develop his knowledge through both formal education and practical experience. Paul’s sector specialty is Global Consumer Staples and he is part of the High-Yield team. Paul also has extensive experience in the field of derivatives, successfully managing overwriting funds for several years. He has a BSc in Finance from Queens University Belfast (1997) and an MSc with distinction in Finance from Queens University Belfast (1998). He is a CFA Charterholder and a member of the Irish branch of the CFA Institute.
Richard Doyle, CFA joined Setanta in 2008. He co-manages Setanta’s various income-oriented portfolios, including the Dividend Fund, Income Opportunities Fund and Reditus. Richard is also responsible for management of the Global Energy sector within the Global Equity Fund. He began his career in 2000 as a trainee fund manager at Scottish Investment Trust. Prior to joining Setanta, he worked at Bank of Ireland Asset Management as an equity manager and senior analyst. Richard has a B.A. in Economics from the University of Dublin, Trinity College and has been a CFA Charterholder since 2003.
David Pastor joined Setanta Asset Management in 2007. He has 4 years experience in the asset management industry, the last 2 on an analyst/fund manager capacity. He has a BS in Business Administration from Universidad de Burgos and is a member of the Association of Chartered Certified Accountants (ACCA). David is also a candidate in the CFA program.
Performance Source: Setanta Asset Management Limited. Benchmark: European Harmonised Consumer Price Index. Fund returns are shown gross of management fees. The performance will be reduced by the impact of management fees paid, the amount of which varies.
The Income Opportunities Fund is managed by Setanta Asset Management Limited and is a representative account of the strategy. The Fund is currently available in Ireland via a unit-linked offering of Canada Life Assurance (Ireland) Limited and prior to this was available as a Unit Trust which is now closed. For these life assurance products, investors should refer to the relevant policy conditions. The strategy is also available on a segregated basis.
WARNING: Past performance is not a reliable indicator of future results. The price of units and the income from them may go down as well as up and investors may not get back the amount invested. The return may increase or decrease as a result of currency fluctuations. Forecasts are not a reliable indicator of future performance.
