View more on these topics

SVM drives performance with Quorum convertibles

SVM’s balanced managed fund is up 19 per cent over the first half of the year compared to the IMA balanced managed sector average of 1.2 per cent.

The fund continues to benefit from narrowing discounts in the investment trust market. It has a 5.3 per cent holding in the quorum oil & gas technology fund, which is trading on a discount of 15 per cent.

Quorum is a play on the need for improved efficiency of production and exploration within the oil and gas sector, following years of under investment.
It is managed by the Canadian-based Quorum Group, which has a track record of producing strong returns without gearing.

The Quorum fund comprises eight investments and pays a dividend equivalent to a 5 per cent yield. Its hands-on approach to the companies in the portfolio mean its managers typically take at least one seat on the board. They use their industry expertise and contacts to provide support to help the companies grow.
SVM holds convertibles in this fund, which are bonds that can be converted into equities if the fund is successful.

Fund manager Donald Robertson says: “Quorum is a safe-ish way of playing private equity in oil, gas and technology as we are not investing in equities. A convertible is debt, which means it is a bond paying a yield that can be converted into ordinary shares. It is a bond which has the uplift of equities.

“If it is not converted, we will get our money back after five years and will have been paid 5, 6 or 7 per cent a year for the privilege.”



Resolution to consult shareholders on Friends deal

Resolution says it is considering its position on a deal with Friends Provident and will consult further with shareholders, following Friends’ rejection of its latest offer.


Aviva set to kickstart residential letting

Aviva is working with property brokers CB Richard Ellis and an unnamed US residential manager on an investment fund to buy and rent out UK residential properties, according to reports.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm