Overview

Summary

  • Aim is to provide capital growth over the long term by investing in Global Equities
  • Opportunity arises from differences in performance of Global Sectors which are often driven by different factors
  • Sector Rotation strategy can capture changes in sector leadership
  • Avoids style bias – portfolio style changes as sector selection changes in different market conditions
  • Provides Active sector selection with Passive implementation using low-cost liquid sector ETFs
  • Provides sector focus with significant diversification and minimal stock specific risk

Investment Approach

The two most important drivers for investment decisions are fundamental value and market trends. Fundamental value determines the potential over the medium/long term but can be a poor indicator of price movements in the short term. Market trends (including momentum and overbought signals) can be a good leading indicator of future price movements but can be dangerous if fundamental value is ignored. Neither analytic should be used in isolation but it is logical to select investments based objectively according to a combination of fundamental value and market trends which are independent of opinion, forecasts and emotion.

Performance

(as at 31 January 2025)

Performance shown is the total return (net of fees & costs) for the Accumulation B share class. Inception date was 7 November 2022. The Fund is not managed against any benchmark. The MSCI World Index and Investment Association Global Sector are shown as comparator benchmarks as per FCA PS 19-04. Past performance is not a reliable indicator of future performance. Source: Ekins Guinness LLP, MSCI, FE fundinfo.

Key Facts

Structure & Administration

Structure UCITS /
ISA
Authorised
Corporate
Director
Depositary Custodian Auditor Income /
Accumulation
Dividend
Payment
Dates
Valuation &
Cut Off
Comparator
Benchmark
UK
Authorised
OEIC
Yes
Waystone
Financial
Services
BNY Mellon
BNY Mellon
KPMG
Both
31 January
&
31 July
12 noon
daily
MSCI World
Index

Share Classes

Share Class Minimum
Holding
Managment &
Administration
Fee
Ongoing
Charges
Figure
ISIN SEDOL
Z Accumulation GBP
£200,000
0.45%
0.70%
GB00BQ1L7137
BQ1L713
Z Income GBP
£200,000
0.45%
0.70%
GB00BQ1L7244
BQ1L724
B Accumulation GBP
£5,000
0.70%
0.95%
GB00BLFFG644
BLFFG64
B Income GBP
£5,000
0.70%
0.95%
GB00BLFFGB97
BLFFGB9

Managers

Charles Ekins

Charles is the founder and Chief Executive of Ekins Guinness LLP. Previously he was Chief Investment Officer at Valu-Trac Investment Management, prior to which he spent 19 years at Morgan Grenfell (Deutsche) Asset Management where he was a portfolio manager, member of the Investment Policy Committee and client director. He read Maths with Computing Science at Bristol University and has an MBA from the City University Business School. Charles is a Director of the Herald Worldwide Technology Fund (Dublin OEIC).

Jasper Falk

Jasper has over 20 years experience in Investment Banking. He established and managed JPMorgan’s Global Inflation trading business which assisted Pension Funds and Asset Manager clients in hedging and managing their liabilities. He was also a member of the Fixed Income Management Committee. Jasper read Engineering and Management Studies at St Catharine’s College Cambridge, and holds the Financial Times Non-Executive Director Diploma.

Holdings

(as at 31 January 2025)

Portfolio Holdings

Equity Analysis

Investment Commentary

as at 31 January 2025

 

The Fund rose 3.9% in January 2025 which gives a return of 40.3% (net of fees and costs) since launch on 7th November 2022. This is behind the MSCI World Index (44.4%) but well ahead of the Investment Association Global sector (32.5%). Since launch, the Fund is in the second quartile of the Investment Association Global Sector.

World Equities were strong again in January mainly on continued but plausible expectations of strong corporate earnings growth in 2025, especially in the US. Markets were unsettled by the unexpected launch in China of DeepSeek which is viewed as major competition to the Artificial Intelligence lead that the US has built and which has been a major reason for strong performance of the US Equity market in 2024, especially in Technology stocks. The DeepSeek announcement caused a major loss of momentum in the Global Technology Sector and caused it to be the worst performing Sector in January (falling 0.7% in GBP terms). It is too soon to know if this is just a temporary correction amid profit taking or the start of a major change in sentiment.

The best performing Global Sectors in January were Communication Services (9.6%), Financials (7.4%), Healthcare (7.2%), Materials (6.0%) and Industrials (5.5%).

The zero holding in Industrials was the main reason for being behind the MSCI World Index in January.

The main changes to the allocations in the Fund over January have been a reduction in Technology due to the significant loss of momentum from the DeepSeek episode. The Fund is now slightly underweight in Technology while we wait to see how it pans out. Technology is at an important point of inflexion, just like it was in September. It needs to recover because all the relative moving averages are now falling, otherwise the loss of momentum could become self-feeding. There is no point in trying to second-guess the next move – it is better to wait and see how the trends develop.

There has been a further increase to Healthcare which is both very cheap and building momentum as sentiment improves. There has also been an increase in Consumer Staples which had previously underperformed significantly and which is now showing early signs of improvement.

The encouraging factors for Equity markets are that corporate earnings remain strong, driven by the continued strong US economy. The main negatives are that equity valuations are stretched, and there is nervousness about Trump’s tariffs.

Documents

Specific to WS Enigma Dynamic Growth Fund

Specific to Fund Umbrella

How to Invest

via Platforms

Directly

The WS Enigma Dynamic Growth Fund is available on the following platforms:

Allfunds Aegon AJ Bell Alliance Trust
Ascentric
Aviva
Barclays
FNZ
Hargreaves
Lansdown
Interactive
Investor
Novia
Nucleus
Pershing
Transact
Zurich

Contact Ekins Guinness LLP

Contact Waystone Fund Services

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WS Enigma Funds

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