TM New Court Equity Growth Fund - Rothschild & Co
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TM New Court Equity Growth Fund Quarterly Report | Issue 27 | January 2021
Cover: Our office at New Court. This is not a promotion or solicitation of the TM New Court Equity
The site has been home to the Growth Fund, which is not usually available to execution only or
business in London since 1809. advisory clients. When certain criteria are met discretionary portfolios
may hold the Fund, but only at Rothschild & Co’s discretion.
© Philippe Ruault/OMA 2012.
Values: All data as at 31 st December 2020 (except inflation which
Rothschild & Co is until 30 th November 2020 as December 2020 data figures are
Wealth Management not yet available). Sources of charts and tables: Rothschild & Co
New Court and Bloomberg, unless otherwise stated. Past performance is not
St. Swithin’s Lane indicative of future performance and investments and the income
London EC4N 8AL from them can fall as well as rise. Fund performance is shown in
+44 20 7280 5000 pounds sterling, after all fees, in total return, combining income
rothschildandco.com and capital growth. Returns may increase or decrease as a result of
currency fluctuations.
© 2021 Rothschild & Co
Wealth Management Please ensure you read the Important Information section at the end
of this document.Fund manager’s review
The ongoing coronavirus pandemic and ensuing lockdowns posed a challenge as
winter approached, but positive vaccine news boosted investor confidence about
the global economic recovery during the fourth quarter.
Performance contributions business focused primarily on human health
The portfolio returned +8.9% in the fourth and wellbeing which operates in three main
quarter and has now returned +236.4% (after segments: pharmaceuticals, food and
fees) since inception (vs. +182.4% for UK environment. Testing is vital for ensuring product
inflation +4% since inception on 15th August quality, and Eurofins offers a trusted and highly
2003.* This equates to an annualised return of reputable service across a global laboratory
+7.2% compared to +6.2% for inflation +4%.** network. As a major provider of COVID-19
testing, Eurofins has been one of the few
The portfolio enjoyed gains across most
beneficiaries of the pandemic. However, positive
positions in the fourth quarter, as equity markets
vaccine news in November led to volatility in
were buoyed by COVID-19 vaccine news in
the share price. We added the position to the
November and many indices concluded the
portfolio at an attractive valuation.
year at record highs. Ryanair (+44.6%) was the
standout performer in the portfolio, as vaccine Constellation Software is a holding company
developments led to renewed hope of increased that acquires, manages and builds software
travel during 2021. Despite reporting a -62% businesses. These software businesses typically
year-on-year decline in passengers over the operate in specific niches and industries, and
quarter, the company is likely to emerge as one demonstrate high-recurring revenues, low
of the strongest players in the industry as it customer churn and strong pricing power. The
uses the crisis as an opportunity to realise its company has been extremely acquisitive –
plans for major capacity expansion and enact buying in excess of 500 companies over the last
multi-year cost savings. Quite remarkably in a 25 years. In our view, Constellation has strong
year marked by a global pandemic, which has competitive advantages in acquiring businesses
particularly affected Ryanair’s core western in the vertical market software (VMS) space,
European markets, the share price was up driven by its scale, its reputation for integrity
+12.5% for the year. and long-term ownership, and its ability to
optimise the companies it acquires. Despite
Following a difficult first half of 2020, we saw
being a hive of acquisition activity, we believe
rebounds across the portfolio, even in our more
that the growth runway is still vast with tens of
economically sensitive holdings, with strong
thousands of potential targets in both North
gains from Lloyds (+38.3%), recently added
America and Europe.
* The TM New Court Equity Booking (+30.2%), and indirectly via our third-
Growth Fund (having changed its These new investments were partially funded
name from RPFM Market Fund
party funds. The Lansdowne Developed Markets
on 1 st June 2014) was created and Phoenix funds both reported strong gains by reducing several return asset positions
on 13th March 2012 as a result
of an amalgamation with the (+36.3% and +37.1% respectively), driven by following a period of strong performance,
RPIC Market Fund which was
launched on 15th August 2003. rebounds in airlines, banks and a number of namely Deere and Ryanair in November, and
** Annualised figures are other typically cyclical names in their underlying Admiral, Berkshire Hathaway, Linde and the
calculated on a compound basis portfolios. We repurchased Lansdowne amidst Bares US Equity fund in December.
to best represent the results of
staying continuously invested the market downturn in the first quarter, and the
from inception of the strategy. During the quarter we sold and subsequently
fund is up +32.8% since re-entry.
Data sources: Rothschild & Co added to our positions in the put warrants. We sold
and Bloomberg Our only return asset detractor over the period two of our holdings in October, as market volatility
Holdings are subject to change was S&P Global (-8.7%), which remains firmly led to two of our Euro Stoxx 50 put warrants
without notice. This document
does not constitute a personal positive for the year (+20.9%). moving ‘in-the-money’ and we chose to monetise
recommendation or an offer
or invitation to buy or sell with relatively little time left until expiry. In
Portfolio activity
securities or any other banking December, we bought a new 12-month put warrant
or investment product. Past We added two new positions to the portfolio
performance is not indicative on the S&P 500 to provide some further protection
of future performance and during the quarter: Eurofins and Constellation
investments and the income in the event of a market setback in 2021.
from them can fall as well as rise. Software. Eurofins is a laboratory testing
TM New Court Equity Growth Fund | January 2021 | Page 3Fund performance
Since inception, the Fund has slightly underperformed inflation +4%. As at
31st December 2020, the net asset value per share was £19.51. The Fund size was
£113.7 million.
Performance since inception (%)*
Net
250
200
150
100
50
0
-50
2004 2006 2008 2010 2012 2014 2016 2018 2020
TM New Court Equity Growth Fund UK Inflation (CPI) +4%
Performance comparison – over time (%)
Since
Q4 2020 2020 2019 2018 2017 2016 inception*
TM New Court Equity Growth 8.9 10.4 18.8 -5.1 9.1 11.0 236.4
Fund
UK inflation +4% 0.8 4.4 5.3 6.1 6.9 5.6 182.4
UK inflation -0.2 0.4 1.3 2.1 2.9 1.6 44.6
Global equities 12.8 14.2 26.2 -7.7 19.8 9.0 309.5
(in local currencies)
Global equities 8.5 13.0 21.7 -3.9 13.2 28.7 393.6
(in sterling)
UK government bonds 0.6 8.9 7.1 0.5 2.0 10.7 158.7
Sterling cashFund holdings
The Fund combines return and diversifying assets which are invested across global
markets. The return assets are held to generate capital growth over the long term;
the diversifying assets are held to protect capital and investment performance,
particularly during difficult markets.
Return assets (78.8%) Diversifying assets (21.2%)
Equities – Companies 27.5% Equities – Companies 25.4% Alternative strategies 7.2%
Admiral 3.3% American Express 4.2% Abbey Capital 1.7%
Ashtead 3.1% Comcast 3.5% CFM Trends 2.7%
Booking 1.4% Deere 4.1% Lyxor Winton Managed 1.1%
Futures
Cable One 2.6% Linde 3.5%
LGT Dynamic Protection 1.6%
Charter Communications
Constellation Software
2.0%
1.3%
Update
Mastercard
Moody's
3.1%
3.7%
Portfolio protection 0.3%
Eurofins 1.1% S&P Global 3.4%
Euro Stoxx 50 2600Fund allocations
The Fund is invested across global regions, asset classes and currencies. The fund
manager follows a diversified investment approach and aims to preserve and grow
the real value of the Fund over the longer term.
Fund holdings by asset class Fund holdings by currency
0.3% 0.4% 0.1%
5.5% 0.1%
7.2% 1.1%
9.3%
4.5%
29.1%
63.7%
78.8%
Equities Fixed income Pound sterling Swiss franc
Cash and Alternative strategies US dollar Yen
cash equivalents Portfolio protection Euro Nordic
Asian + EM
Percentages may not sum to 100% due to rounding. The above currency exposure is net of foreign exchange hedges. For the purposes of more
accurately managing currency risk, where appropriate, we reflect the currency exposure of certain funds based on the underlying securities held
within the fund, rather than the denomination of the fund.
Page 6 | TM New Court Equity Growth Fund | January 2021Supporting information
TM New Court Equity Growth Fund
Type of fund Authorised non-UCITS retail scheme unit trust.
Objective T he objective of the Fund is to preserve and grow the real value of the Fund over the
long term through a diversified investment approach. The Fund may utilise a wide
range of asset classes in order to achieve its objective. These may include equities,
cash deposits, bonds, warrants, money market instruments, derivatives and forward
transactions, funds (regulated and unregulated), exposure to currencies, commodities
and property.
Launch date 13th March 2012
Share class Income. Base currency is pound sterling.
Minimum investment £10,000
Estimated synthetic OCF* 1.34%. This includes the manager’s fee (1.00%), other expenses (0.14%) and expenses
on underlying fund investments (0.20%).
Transaction costs** 0.08%
Pricing Valuation day for subscriptions: each business day
Valuation day for redemptions: each business day
Settlement period: T+4
Comparators UK CPI +4%. MSCI All Country World in sterling. Bloomberg Barclays Gilts Total Return Index.
Barclays Benchmark Overnight GBP Cash Index.
The investment manager is Rothschild & Co Wealth Management UK Limited. The Manager is Thesis Unit Trust Management Limited, Exchange
Building, St John’s Street, Chichester, West Sussex, PO19 1UP. Authorised and regulated by the Financial Conduct Authority.
* The Ongoing Charges Figure (OCF) as calculated in December 2020. The OCF is the ratio of the Fund’s total disclosable costs (excluding
overdraft interest) to the average net assets of the Fund. It is intended to provide a reliable figure that gives the most accurate measure of
what it costs to invest in the Fund and is calculated based on the last period’s figures. The Synthetic OCF includes the OCF of the underlying
fund investments weighted on the basis of their investment proportion in the Fund. From time to time management fees may differ. This will be
disclosed and explained to you in good time before you invest.
** The transaction costs show the most recent transaction figures available.
TM New Court Equity Growth Fund | January 2021 | Page 7Notes
At Rothschild & Co Wealth Management we offer an objective long-term
perspective on investing, structuring and safeguarding assets, to preserve
and grow our clients’ wealth.
We provide a comprehensive range of services to some of the world’s
wealthiest and most successful families, entrepreneurs, foundations
and charities.
In an environment where short-term thinking often dominates, our long-
term perspective sets us apart. We believe preservation first is the right
approach to managing wealth.
Important information
This document is strictly confidential and produced by Rothschild avoidance of doubt, neither this document nor any copy thereof
& Co for information purposes only and for the sole use of the may be sent to or taken into the United States or distributed in
recipient. Save as specifically agreed in writing by Rothschild & the United States or to a US person. References in this document
Co, this document must not be copied, reproduced, distributed to Rothschild & Co are to any of the various companies in the
or passed, in whole or part, to any other person. This document Rothschild & Co Continuation Holdings AG Group operating/
does not constitute a personal recommendation or an offer trading under the name “Rothschild & Co” and not necessarily
or invitation to buy or sell securities or any other banking or to any specific Rothschild & Co company. None of the Rothschild
investment product. Nothing in this document constitutes legal, & Co companies outside the UK are authorised under the UK
accounting or tax advice. Financial Services and Markets Act 2000 and accordingly, in
the event that services are provided by any of these companies,
The value of investments, and the income from them, can go
the protections provided by the UK regulatory system for private
down as well as up, and you may not recover the amount of your
customers will not apply, nor will compensation be available
original investment. Past performance should not be taken as
under the UK Financial Services Compensation Scheme. If you
a guide to future performance. Investing for return involves the
have any questions on this document, your portfolio or any
acceptance of risk: performance aspirations are not and cannot
elements of our services, please contact your client adviser.
be guaranteed. Should you change your outlook concerning your
investment objectives and/or your risk and return tolerance(s), The Rothschild & Co Group includes the following businesses
please contact your client adviser. Where an investment involves (amongst others): Rothschild & Co Wealth Management UK
exposure to a foreign currency, changes in rates of exchange may Limited. Registered in England No 4416252. Registered office:
cause the value of the investment, and the income from it, to go New Court, St Swithin’s Lane, London, EC4N 8AL. Authorised
up or down. Income may be produced at the expense of capital and regulated by the Financial Conduct Authority. Rothschild &
returns. Portfolio returns will be considered on a “total return” Co Bank International Limited (No 1088). Registered office: St
basis meaning returns are derived from both capital appreciation Julian’s Court, St Julian’s Avenue, St Peter Port, Guernsey, GY1
or depreciation as reflected in the prices of your portfolio’s 3BP. Licensed and regulated by the Guernsey Financial Services
investments and from income received from them by way of Commission for the provision of Banking and Investment Services.
dividends and coupons. Holdings in example or real discretionary Rothschild & Co Bank AG. Registered office: Zollikerstrasse
portfolios shown herein are detailed for illustrative purposes 181, 8034 Zurich, Switzerland. Authorised and regulated by
only and are subject to change without notice. As with the rest of Eidgenössischen Finanzmarktaufsicht FINMA.
this document, they must not be considered as a solicitation or
Investment returns and the principal value of an investment will
recommendation for separate investment.
fluctuate and may be volatile. An investment in the Fund involves
Neither MSCI nor any other party involved in or related to significant risks, including the risk of loss of capital. The TM
compiling, computing or creating the MSCI data makes any New Court Equity Growth Fund is suitable only for sophisticated
express or implied warranties or representations with respect investors and requires the financial ability and willingness to
to such data (or the results to be obtained by the use thereof), accept the risks inherent in an investment in the TM New Court
and all such parties hereby expressly disclaim all warranties of Equity Growth Fund. No assurance can be given that the TM
originality, accuracy, completeness, merchantability or fitness for New Court Equity Growth Fund’s investment objectives will be
a particular purpose with respect to any of such data. Without achieved. Account valuations of individual investors may vary and
limiting any of the foregoing, in no event shall MSCI, any of its such historical returns may not reflect the performance of any
affiliates or any third party involved in or related to compiling, one investor.
computing or creating the data have any liability for any direct,
There can be no assurance that an investment will achieve
indirect, special, punitive, consequential or any other damages
returns at levels comparable to the returns reflected herein. An
(including lost profits) even if notified of the possibility of such
investors’ return may be different than that of the TM New Court
damages. No further distribution or dissemination of the MSCI
Equity Growth Fund because of, among other things, differences
data is permitted without MSCI’s express written consent.
in the amount of capital at risk, diversification, risk tolerance and
Although the information and data herein are obtained from portfolio turnover.
sources believed to be reliable, no representation or warranty,
No independent party has audited the performance results shown
expressed or implied, is or will be made and, save in the case
herein, nor has any independent party undertaken to confirm that
of fraud, no responsibility or liability is or will be accepted by
such results reflect the trading method under the assumptions or
Rothschild & Co as to or in relation to the fairness, accuracy or
conditions of Rothschild & Co’s investment process.
completeness of this document or the information forming the
basis of this document or for any reliance placed on this document The indices referenced herein are well-known market indices
by any person whatsoever. In particular, no representation or which are included merely to show the general trend in the
warranty is given as to the achievement or reasonableness of any markets for the periods indicated and are not intended to imply
future projections, targets, estimates or forecasts contained in that the pro-forma returns were comparable to the indices either
this document. Furthermore, all opinions and data used in this in composition or element of risk or that the TM New Court Equity
document are subject to change without prior notice. Growth Fund’s portfolio is benchmarked to the indices. The indices
are unmanaged, may or may not be investable, have no expenses
This document is distributed in the UK by Rothschild & Co Wealth
and reflect reinvestment of dividends and distributions. Index data
Management UK Limited. Law or other regulation may restrict the
is provided for comparative purposes only. A variety of factors may
distribution of this document in certain jurisdictions. Accordingly,
cause an index to be an inaccurate benchmark for a particular
recipients of this document should inform themselves about and
fund and the index does not necessarily reflect the actual
observe all applicable legal and regulatory requirements. For the
investment strategy of the TM New Court Equity Growth Fund.
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