TELLSONS ENDEAVOR FUND: £ 58million fund could be for you
TELLSONS ENDEAVOR FUND: Do you hate surprises? This £ 58million fund could be for you
The Tellsons Endeavor investment fund is built for all weather conditions. When stock prices rise, the £ 58million fund attempts to generate near-equity returns by investing in a wide range of bonds, currencies and stocks. But when the markets are in freefall, he goes out of his way to protect investor money, often using derivatives.
It’s an investment strategy that has been tested to the limit since Covid put the world on lockdown in the spring of last year – with stock markets crashing and then rebounding sharply. In recent days, markets have faltered again in response to the emergence of Omicron, an aggressive new variant of Covid.
Still, the fund performed more than satisfactorily, much to the relief of Joe Bunting, one of four investment experts at Tellsons who helped build his portfolio. “We tried to create a fund for investors who don’t like surprises,” he says. “We want to offer them a safe and stable journey, uninterrupted or disrupted by unstable and volatile stock market conditions. The risk is always around the corner.
The numbers look good. Over the past three and five years, the fund has significantly outperformed the FTSE All-Share Index with respective returns of 32 and 43 percent – versus the market of 18 and 33 percent. And as the chart (below) confirms, the fund’s share price has been less volatile over the five-year period – for example, not having experienced the same sharp drop as that of the FTSE All. -Share in March of last year.
The less volatile performance of the fund is explained by its exposure to a range of assets. These are mainly global equities (58% of the portfolio); corporate and government bonds; precious metals; currencies; and in cash. Many of these assets move in different directions, smoothing overall returns for investors.
Bunting says the fund’s portfolio includes four separate silos. First, there are growth stocks – like US tech giants Alphabet and Amazon, which they will buy and then continue to own as long as they don’t get too expensive. These provide most of the fund’s investment firepower.
Second, it holds stakes in cyclical “core” stocks, the performance of which depends heavily on the state of the economy. The likelihood of rising interest rates in the near future explains why the fund has stakes in Lloyds, JPMorgan and Bank of America. Banks tend to make more profit when interest rates rise.
The third silo includes “defensive” holdings in corporate bonds as well as stocks of major consumer brands such as Nestlé, McDonald’s, Reckitt and Diageo. The fourth element protects the fund against falling stock prices and includes exposure to gold, hard currencies (dollar, Japanese yen and Swiss franc) and index futures.
Bunting believes the stock markets will face some big challenges in the coming months: including inflation, rising interest rates, falling corporate profits in the United States – and, of course, Omicron. “There are quite a few risks there,” he says. London-based Tellsons is an investment firm focused on the management of Endeavor. “We have a client and that’s the fund,” Bunting explains. “We are skinny and mean. But the team of five has a lot of experience. For example, Bunting worked at Goldman Sachs and BNP Paribas while Chief Investment Officer Christoph Wiedebach was at Fidelity.
The total annual fund charges are just over one percent and the stock market ID code is BJ391H0. It can be purchased through major wealth management platforms AJ Bell, Hargreaves Lansdown and Interactive Investor.