The Mercantile Diversified Fund is a sub-fund of the Multi-Manager UCITS Platform Fund Plc. With the objective of achieving capital growth the fund is designed to provide a unique investment opportunity over the medium to long term, via investment into a geographically diversified portfolio of open-ended funds (“Underlying Funds”). The Fund may invest in a blend of equity, debt securities and Underlying Funds or may, at any time, hold up to 100% in a particular asset class. Toggle below to view the strategy in more detail and the maximum percentage that the fund is allowed to invest in each asset class and sector.
Actively managed, the Fund may invest across any sector and may be diversified in terms of country or region. Asset allocation between equity and debt (either directly or via Underlying Funds) may vary considerably over time.
equities and bonds
Individual equities and bonds are selected by the Investment Manager using a ‘bottom up’ analysis. The ‘bottom up’ process is focussed on credit and balance sheet analysis, meetings with companies management, and is carried out on each transaction before it is considered as an investment. Companies are chosen on the basis of their business model, strength of balance sheet, sustainability of cash flow, dividend yield and expected level of growth. Credit analysis, designed to ensure the credit worthiness of all securities, is considered important in achieving the objective of capital growth.
strategic equity purchases
For strategic equity purchases, the key criteria include earnings quality, sustainable dividend growth, compelling valuation, strength of company management and consistent free cash flow. Compelling valuation is assessed by comparing the assets inside an investment to the price of the overall investment and future value of assets based on the managers outlook for asset values across sectors. Strength of company management involves an evaluation of the organisational structure as well as the experience and abilities of senior executives.
tactical equity purchases
For tactical equity purchases, which will be made with a much shorter time horizon to take advantage of perceived short term anomalies or mispricing with assessment of chart patterns and trading volume, momentum, moving average convergence/divergence, relative strength and volume. Recent and anticipated stock-related announcements will also be considered.
Generally, the aim of strategic equity purchases is to buy and hold whereas the aim of tactical equity purchases is to buy and realise a profit in under six months. For bonds, key considerations include yield to maturity, liquidity, credit rating, asset quality, income security and duration.
Underlying Funds will be selected on the basis of performance indicators (such as historical returns) and other valuation criteria (including risk-return indicators such as Value at Risk) which the Investment Manager deems appropriate to achieving the investment objective of the Fund. Investments in emerging countries shall not exceed 50% of the Fund’s net assets.
Why choose the fund.
The investment objective of the Mercantile Diversified Fund is to achieve capital growth over the medium to long term. Toggle below to view more details on what the fund invests in:
equities and equity related securities
The Fund may invest directly or indirectly (through Underlying Funds) up to 100% of its net asset value in equities and equity-related securities, which are listed on any Recognised Exchange globally. Equity-related securities to which the Fund may have exposure, include, but are not limited to common stock, preference shares and warrants (limited to 10% of net assets). The Fund may invest in recently issued transferable securities (limited to 10% of net assets) which will be admitted to official listing on a stock exchange or other market within a year. The Fund will seek to invest in a mix of small, mid and large cap equities. The Investment Manager considers companies with a market capitalisation of up to £250 million to be small cap, companies with a market capitalisation of £250 million to £1 billion to be mid cap and companies with a market capitalisation of over £1 billion to be large cap equities.
collective investment schemes
The Fund may invest up to 100% of its assets in Underlying Funds, primarily UCITS (including exchange traded funds “ETFs) but may also invest, in aggregate, up to 30% of its net asset value in alternative collective investment schemes, subject to the requirements set out in the Central Bank’s guidance.
Subject to the foregoing, the Underlying Funds in which the Fund will invest, be they UCITS or alternative investment funds, may be largely domiciled in the EU (typically, but not limited to, Ireland and Luxembourg) but may also be domiciled in jurisdictions outside the EU (such as the United States) as long as they satisfy the criteria above.
The Underlying Funds may invest directly and indirectly through financial derivative instruments in equity and equity-related securities and in debt and debt-related securities.
debt and debt-related securities
The Fund may invest directly or indirectly (through Underlying Funds) up to 100% of its net asset value in debt and debt-related securities (debentures, gilts deposits, notes and bonds including corporate, sovereign, floating and fixed rate notes and bonds), which may be issued or guaranteed by any sovereign government or their agencies, local authority, supranational or public international bodies, banks, corporates or other commercial issuers.
Debt and Debt-Related Securities held by the Fund will be listed on any Recognised Exchange globally and will be primarily of investment grade quality. The Investment Manager considers investment grade Debt and Debt-Related Securities to be those which have a credit rating higher than BBB- at the date of purchase as rated by Standard & Poor’s (or equivalent recognised rating agency). Investment in non-investment grade debt and debt related securities will be limited to 10% of net assets.
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Driven by results.
The senior management team behind the Mercantile Diversified Fund have a track record of success within the markets in which the fund operates, alongside extensive business and portfolio management experience.
Driven by results, we aim to build strategic partnerships that foster growth, drive profitability and create shareholder value.