Setanta Reditus Income Fund – UCITS

Description:

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.

 

Investment Objective:

The fund has two objectives.  They are to:

  1. Generate income; and
  2. 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. Learn more

The EU Sustainable Finance Disclosure Regulation (“SFDR”) requires a determination, on a product-by-product basis, whether sustainability risks are relevant to financial products.  For the purposes of SFDR, “sustainability risk” means an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of an investment.

While sustainability risks might (from an economic perspective) have a material negative effect on the returns of the Setanta Reditus Income Fund, we have determined that sustainability risks are not relevant to the Fund. The Fund does not expressly promote or have a core objective concerning sustainability matters as set out in SFDR, or expressly oblige Setanta to integrate sustainability risks into its investment decision making and/or assess the likely impacts of sustainability risks on the returns of the Fund.

Setanta will keep its assessment that sustainability risks are not relevant to the Fund under regular review. Setanta has implemented a policy in respect of the integration of sustainability risks in its investment decision making process on a firm-wide basis. This policy is available here.

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.