Funds

MitonOptimal Jersey Limited is the Investment Manager for the Orchard Fund, an actively managed equity income fund that is predominantly focused on dividend yielding stocks with good cash flow and sound fundamentals. The Fund is a sub-fund of Orchard Funds PLC, which has the status of a recognised scheme under Section 264 of FSMA 2000 of the United Kingdom. The Fund is authorised in Ireland and regulated by the Central Bank of Ireland.

Orchard Funds PLC is an open-ended investment company with variable capital and having segregated liability between its funds structured as an umbrella fund incorporated with limited liability in Ireland under registration number 365198.

OUR PHILOSOPHY

An actively managed equity income Fund that is predominantly focused on dividend yielding stocks with good cash flow and sound fundamentals.

OUR APPROACH

The Fund uses a non-geared options overlay to enter and exit positions, and by doing so materially enhances the income of the Fund whilst simultaneously reducing the risk.

OUR TARGET

The Fund targets a six percent dividend yield whilst seeking to deliver additional capital gains over the business cycle.

The Orchard Fund Investment Philosophy

The essence of the Orchard Fund strategy could not be simpler. Like many managers, we aim to buy the shares of good quality companies at prices at which we find them attractive and, once we have done so, try to establish the price above which we would no longer find those shares attractive and look to sell them at that price.

How we execute that basic strategy is how we differentiate ourselves and, we believe, add significant value for our investors. The first part of our investment process is similar to many other managers as we discuss further in the investment process section of this website. However what we do next is where we differ from most, if not all of our competitors and do so for good reason. Instead of accepting the price at which a stock is trading in the market, we establish the price at which we are willing to buy the stock and commit to doing so at that price. The benefit to the Orchard Fund is that we are paid a premium for doing so, despite only agreeing to buy that stock some way below the current market price.

If that seems too good to be true, let’s look at why this happens in a little more detail. Unlike the person who buys a stock directly, the amount we are able to make is limited to the premium received. Some tell us that this is asymmetrical by taking all of the risks with very limited upside. We beg to differ. Unlike many managers who dream of markets rising by high double digits each year, we believe that by agreeing to buy good quality solid companies at prices we find attractive, we will be able to produce a more stable return profile, targeting 6-8% return per annum over the business cycle.

Risk Return

Banking gains, minimising losses

By minimising our losses when markets fall, we believe that such a performance will beat most markets over the business cycle.

Over the first 16 years of this strategy, we have materially out-performed equity markets with significantly lower risk. Over the same period, we have out-performed the > 1 year UK Gilt market, and the Iboxx Corporate Bond Index, albeit with slightly more risk.

We know what we want to do, we know how to do it, and we have very high expectations that the results that this will produce will match our past experiences and clients’ expectations.

Objectives and Investment Policy

  • The Orchard Fund (the “Fund”) invests in shares of large international companies which have a particular niche which MitonOptimal Jersey Limited (the “Investment Manager”) believes will lead to sustainable growth in earnings. The Fund does not target a defined national or sector exposure.
  • The shares are chosen using specific investment criteria. These include a preference for multi-national dividend-paying companies with high free cash flow and a strong market position. The Investment Manager favours companies which have low debt burdens and a strong and sustainable product offering.
  • The Fund uses commitments to buy (written put options) and commitments to sell (written call options) to help reduce risk and enhance the yield of the Fund.
  • By making a commitment to buy a share, (writing a put option), in return for which the Fund receives a payment, the Fund is committed to buying the agreed share at an agreed price until an agreed date. In the event that the share falls below that price, the Fund may be forced to buy at a price above the prevailing market price at that time.
  • By making a commitment to sell a share, (selling a call option), the Fund is committed to sell the agreed share at an agreed price until an agreed date. In the event that the share rises above that price, the Fund may be forced to sell its holding at a price below the market price at that time.
  • The Fund’s ranking on the above scale is calculated based on historical data and may not be a reliable indication of the Fund’s future risk profile which may change over time. The lowest category does not mean a risk-free investment.
  • There is no capital guarantee or protection on the value of the Fund. You can lose all capital invested in the Fund.
  • The share classes of the fund are ranked at 3 7 4 because share classes of this type have experienced a medium level of rise and fall in value in the past.
  • The value of the Fund may be adversely affected if a party with whom the Fund transacts becomes unable or unwilling to honour its obligations to the Fund.
  • If the shares close above the price at which the Investment Manager has agreed to buy, or below the price at which the Investment Manager has agreed to sell, the commitment expires and the premium received is kept. Commitments to buy are only made when there is cash available to buy the shares.
  • Hedging is used to reduce currency risk at Fund and share level.
  • The Fund aims to achieve better performance than the MSCI World Index over the business cycle by beating a combination of 50% of the MSCI World Index and 50% cash in each year. (the “Benchmark”).
  • Although the performance of the Fund is measured against the Benchmark, the Fund has full flexibility to invest in shares not included or represented in the Benchmark.
  • You may subscribe and redeem on demand by providing the application form/redemption documentation to the Administrator. The application form/redemption documentation must be received before the cut-off time (12 pm Irish Time) on the relevant dealing day, as defined in the Fund’s supplement (the “Supplement”).
  • Despite the liquidity of the investments, in certain exceptional circumstances, a market may not be available in which to sell them.
  • The underlying investments in the Fund are international shares and whilst the Fund will mitigate some of the risks associated with this asset class, the volatility of the strategy will be directly affected by the volatility of shares.
  • Further information on risks may be found in the section of the Prospectus of the Fund (the “Prospectus”) entitled “Risk Factors”.

Application Form

Standard Application Form
last updated: 4th July 2018

Application Form for A & B Share Classes
last updated: 4th July 2018

Fact Sheets

June 2018 A RDR  Fund Factsheet
last updated: July 2018

May 2018 A RDR  Fund Factsheet
last updated: June 2018

April 2018 A RDR  Fund Factsheet
last updated: April 2018

February 2018 A RDR  Fund Factsheet
last updated: March 2018

January 2018 A RDR  Fund Factsheet
last updated: February 2018

December 2017 A RDR  Fund Factsheet
last updated: January 2018

November 2017 A RDR  Fund Factsheet
last updated: December 2017

October 2017 A RDR  Fund Factsheet
last updated: November 2017

September 2017 A RDR  Fund Factsheet
last updated: October 2017

August 2017 A RDR  Fund Factsheet
last updated: September 2017

July 2017 A RDR  Fund Factsheet
last updated: August 2017

June 2017 A RDR  Fund Factsheet
last updated: July 2017

May 2017 A RDR  Fund Factsheet
last updated: June 2017

 

Investment Commentary

Orchard Investment Commentary - June 2018
last updated: 10th July 2018

Orchard Investment Commentary - May 2018
last updated: 13th June 2018

Orchard Investment Commentary - April 2018
last updated: 4th May 2018

Orchard Investment Commentary - March 2018
last updated: 5th April 2018

Orchard Investment Commentary - February 2018
last updated: 7th March  2018

Orchard Investment Commentary - January 2018
last updated: 9th February 2018

Orchard Investment Commentary - December 2017
last updated: 9th January 2018

Orchard Investment Commentary - November 2017
last updated: 7th December 2017

Orchard Investment Commentary - October 2017
last updated:  6th November 2017

Orchard Investment Commentary - September 2017
last updated: 4th October 2017

Orchard Investment Commentary - August 2017
last updated: 6th September 2017

Orchard Investment Commentary - July 2017
last updated: 2nd August 2017

Orchard Investment Commentary - June 2017
last updated: 4th July 2017

Orchard Investment Commentary - May 2017
last updated: 6th June 2017

Orchard Investment Commentary - April 2017
last updated: 4th May 2017

Key Investor Information (KIIDS)

KIIDS - GBP Accumulation (A)
last updated: 15th February 2018

KIIDS - GBP Accumulation (B)
last updated: 15th February 2018

KIIDS - GBP Accumulation (G)
last updated: 15th February 2018

KIIDS - GBP Accumulation (S)
last updated: 15th February 2018

KIIDS - CHF Accumulation (G)
last updated: 15th February 2018

KIIDS - CHF Accumulation (S)
last updated: 15th February 2018

KIIDS - EUR Accumulation (G)
last updated: 15th February 2018

KIIDS - EUR Accumulation (S)
last updated: 15th February 2018

KIIDS - USD Accumulation (G)
last updated: 15th February 2018

KIIDS - USD Accumulation (S)
last updated: 15th February 2018

KIIDS - GBP Accumulation (GA)
last updated: 15th February 2018

KIIDS - EUR Accumulation (GA)
last updated: 15th February 2018

KIIDS - USD Accumulation (GA)
last updated: 15th February 2018

KIIDS - GBP Accumulation (SA)
last updated: 15th February 2018

KIIDS - EUR Accumulation (SA)
last updated: 15th February 2018

KIIDS - USD Accumulation (SA)
last updated: 15th February 2018

Prospectus

Orchard Funds Plc Prospectus
last updated: 2nd February 2017

Remuneration Policy

Remuneration Policy
last updated: 30th April 2017

Supplement

Orchard Funds Plc Supplement
last updated: 2nd February 2017

Top Movers

Top Movers - June 2018 
last updated: 10th July 2018

Top Movers - May 2018 
last updated: 13th June 2018

Top Movers - April 2018 
last updated: 4th May 2018

Top Movers - March 2018 
last updated: 5th April 2018

Top Movers - February 2018 
last updated: 7th March 2018

Top Movers - January 2018 
last updated: 9th February 2018

Top Movers - December 2017 
last updated: 9th January 2018

Top Movers - November 2017 
last updated: 7th December 2017

Top Movers - October 2017 
last updated: 6th November 2017

Top Movers - September 2017 
last updated: 4th October 2017

Top Movers - August 2017 
last updated: 6th September 2017

Top Movers - July 2017 
last updated: 2nd August 2017

Top Movers - June 2017 
last updated: 4th July 2017

Top Movers - May 2017 
last updated: 6th June 2017

Top Movers - April 2017 
last updated: 4th May 2017

US Tax Forms

US Tax Form W8 BEN
last updated: 15th November 2014

US Tax Form W8 IMY
last updated: 15th November 2014

Address

MitonOptimal Jersey Limited
Suite 23
4 Wharf Street
St Helier
Jersey
JE2 3NR

Phone

+44 (0)1534 616818

Regulatory Information

MitonOptimal Jersey Limited (Registration No. 97242) is regulated by the Jersey Financial Services Commission.

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