Setanta Reditus Income Fund – UCITS
The Setanta Reditus Income Fund is a sub-fund of Beresford Funds ICAV and is managed by Setanta Asset Management Limited (“Setanta”).
The Fund is an actively managed, ethically-screened equity portfolio which typically holds c.30-35 stocks. Ethical restrictions exclude investments in a number of areas, including the likes of tobacco, armaments, embryonic stem cell research, and fossil fuels. The Fund has historically mainly invested in equities, but has the capacity to also invest in fixed income assets. It marries Setanta’s experience in income-oriented investment with its skill in option writing to achieve an above-market average income yield. The Fund’s income target is declared at the beginning of each year, and dividends are paid bi-annually, in January and July. The portfolio is managed in accordance with the Setanta investment philosophy. That is, the managers seek to own good assets for the long-term at prices below what they think they’re worth, carefully considering each investment’s risk profile.
The fund is managed by three portfolio managers, who also look to leverage off the experience and knowledge of their colleagues. While the Fund does not target specific regional or sector weights, the portfolio managers seek to maintain a sensible level of diversification across those areas of the market deemed to be ethical. Rather than focusing on the historic level of volatility of an asset, the portfolio managers regard the probability of permanent impairment of capital as the most relevant measure of risk. In doing so, they seek to maximise downside protection by understanding the risks posed by the valuation, financial, and operational characteristics of the asset.
The fund employs an option writing strategy. This entails the sale of both call and put options in return for a cash premium, representing an income stream that boosts the underlying income yield of the fund. This strategy is employed in a conservative fashion, as all options written are fully covered.
The fund has two objectives. They are to:
- Generate income; and
- Achieve capital appreciation over the long term.
Key Information & Disclosures(s)
The Setanta Reditus Income Fund is a sub-fund of Beresford Funds ICAV. The Custodian for the Fund is Citibank International Limited, Ireland Branch. The Fund is authorised in Ireland and regulated by the Central Bank of Ireland.