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Issued by 1OAK Capital Limited, authorised and regulated by the Financial Conduct Authority. 1OAK Capital Ltd (1OAK) (Registered in England & Wales Number: 06890293; FCA registration number 501453) provides fund management services for its customers. 1OAK Capital Limited is authorised and regulated by the Financial Conduct Authority. Registered Office of 50 Sloane Avenue London SW3 3DD.

1OAK RAIA is a fund offering long-term capital growth investing in a high-conviction portfolio of global equities in the Robotics, Artificial Intelligence and Automation sectors.

Key Points

  • High conviction portfolio in Robotic, Artificial Intelligence and Automation sectors globally
  • UCITS V Fund
  • Available in different share classes and currencies (USD, EUR, GBP)
  • Daily liquidity

Fund Summary

  • Fund Name: White Fleet – 1OAK RAIA
  • Fund Type: UCITS V Fund
  • Legal form: sub-fund of White Fleet SICAV
  • Domicile: Luxemburg
  • Inception date: 05.12.2019
  • Dividend: Accumulation
  • Investment Manager: 1OAK Capital Limited
  • Management Company: MultiConcept Fund Management Company
  • Supervising Authority: CSSF
  • Depositary and Transfer Agent: Credit Suisse (Luxemburg) S.A.

Target Market

Investor Type Professional, Advised and Retails
Objective Capital growth
Attitude to risk
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Availability Directly from the Transfer Agent and Sub-distributors

Fund Features

Characteristics

The returns from the fund may be very volatile. The value of the fund may increase and decrease significantly. The performance of the fund is subject to the market perception of the success of the technologies that are offered by the companies held by the fund. This perception may change quickly, causing the value of the shares to change significantly and rapidly.

Investment Objective

RAIA aims to offer the highest possible level of capital growth whilst paying due attention to preservation of capital, diversification of risks and whilst remaining mindful of the liquidity of the assets within the portfolio.

Philosophy

Technology continues to grow exponentially, transforming industries, consumer behaviour and productivity. The pace of change is so fast that new technologies are being developed and deployed before most people even realise what is possible. There are mega-themes that are playing out at a global level that operate in parallel but which also reinforce each other. RAIA is a high conviction, low turnover fund that aims to identify companies that will benefit significantly from global trends.

In an increasingly bi-polar world the dominance of Silicon Valley is now challenged by tech giants in the Chinese gravitational field. The manager is able to combine direct access to primary Chinese research, Government data and policy documents, information on trends and developments in the countries and companies that fall under Chinese influence with Western information to form a truly global perspective.

Traditional asset management techniques, ratios and analysis are not suited to investing in new disruptive technology. The value of companies can increase rapidly in advance of the companies generating a profit, or even sales as investors start to appreciate the potential benefits and future revenues. Traditional valuation metrics and processes are redundant for companies that are capable of hyper growth. The manager instead focuses on the destination of the companies held by the fund, the ultimate position that they can reach, rather than the current status quo. The manager looks to establish positions in companies that will benefit from these global mega trends in advance of catalysts or significant events that will materially affect the valuation of the company.

Investment Universe

The fund may buy shares in listed companies globally. The fund may use listed and OTC derivatives to gain exposure to companies and for efficient portfolio management.

Investment Process

The manager aims to identify global trends in technology that are driving change in economic behaviour, creating value, increasing efficiency and so driving up company valuations. The manager combines western sources of information and data with primary research of the Chinese market. Direct access to Chinese government economic policy, data and trends offers a valuable addition to the western perspective on the evolution and impact of technology. Combining East and West allows the manager to see global trends and the events and catalysts that are likely to shift perceptions of value.

Individual positions are established in companies that are seen as the significant beneficiaries from the global trends identified by the manager. The simple development of the trend may be enough to drive up valuations. Positions may also be established in anticipation of a predicted event that will act as a catalyst for change. Positions are expected to be held for the long term because the companies are expected to be able to benefit from exponential growth, multiplying their value many times over. The focus of the manager is on the destination that the company may get to. Positions will be held until the time that the trends have unfolded and the share price of the companies discounts the full potential of future earnings.

This long term perspective and focus on the core value of the firm enables the manager to exploit market volatility and time the entry point into new positions and to add to existing holdings.

Fund Performance

The fund is expected to offer high returns in the long term with a commensurate level of volatility. The fund follows a high-conviction investment approach, and the portfolio is unlikely to overlap with broader equity markets, or with funds in similar sectors.

Returns

The Fund has a live track record since December 2019.

Performance chart

raia chart 1

Performance

 Annualised (%)

1 Y

3 Y

5 Y

Since Inception

Fund

58.20

-

-

25.61

 Cumulative (%)  

1 M

3 M

6 M

1 Y

Since Inception

Fund

 

8.88

6.17

50.47

79.68

45.94

 Full Calendar Year (%)

2019

2020

2021

Fund

-

27.38

-

Portfolio Information

raia chart 2 june

PM Commentary

In the month of April, 1OAK RAIA was down 2.8%  while the S&P 500 was up 5.2% and the Nasdaq was up 5.8% over the same period. The Fund underperformed the two indices mainly due to the weak performance of the japanese robotic and sensor makers. The Fund is up 65.2%  since 30 June 2020.

Over the past month, the biggest positive contributor was Data analytics sector with about 1% in profit. Another sector with decent returns was Health care with Intuitive Surgical posting some +0.7%. Softbank Group added another 0.6% and Industrial sector added 0.6% as well. The biggest drawdown was seen on Gene Editing names with 0.6% loss on the sector which includes names held by other pureplay hypergrowth funds.

Although the Industrial and Healthcare sectors benefitted from the style rotation from growth to value we have witnessed since February, we believe that in the longer term growth names will still be the driving force globally.   We saw early signs that the Space economy sector is rebounding and back on investors’ radar. We increased our allocation on Virgin Galactic to about 8% ahead of its ER in early May and test flights scheduled this summer.

The Fund was well positioned to benefit from all evolving investment themes. Our main conviction continues in Data analytics and Space economy. We now also favour the Blockchain technologies sector over EV. As demonstrated by Tesla’s Q1 report, holding Bitcoins in its balance sheet helped Tesla beat its earnings estimates by a large margin.  We expect this strategy will be continuously used by Tesla to gain an edge against its EV competitors (esp. in China). We predict that Tesla will consistently have an edge versus its competitors, thanks to gains from selling carbon credits and utilising Bitcoins in its cash management.

At a geographical level our significant exposure to the US and Japan continues to pay off. Japanese stocks held strongly this month. The USD weakened against JPY this month so the pnl was positive. We expect the Japanese market would benefit from a global capital rebalance from US to other developed market. China may rely more on Japan and Europe for next step cooperation.

For the next month we would broadly keep current allocations of sectors and countries.

Risks

Past performance is not an indicator of future performance. Performance can be affected by commissions, fees or other charges as well as exchange rate fluctuations. This webpage may include information on investments that involve special risks. You should seek the advice of your independent financial advisor prior to taking any  investment decisions based on this presentation or for any necessary explanation of its content.

This material has been prepared by 1OAK Capital Ltd (Co No 6890293). None of the investment fund manager, management company, the registrar and transfer agent, the central administration or the custodian of the Fund has independently verified any information contained herein and no party makes any representation or warranty as to the accuracy, completeness, or reliability of such information.

The information contained has been obtained from private and public sources believed to be reliable and the opinions, analysis, forecast, projections and expectations (together “Opinions”) contained in this presentation are based on such information and are expressions of belief only. No representation or warranty, express or implied is made that such information or Opinions is accurate, complete or verified and it should not be relied upon as such. Information and opinions contained in this presentation are published for recipients’ reference only, but are not to be relied upon as authoritative or without the recipients' own independent verification or in substitution for the exercise of judgment by any recipient and are subject to change without notice.

Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports and the applicable terms & conditions. Please refer to the `Risk Factors’ section of the Prospectus For all risks applicable to investing in any fund and specifically this Fund. The above documents can be obtained free of charge on request from Credit Suisse (Luxemburg) S.A.

The distribution of this report does not constitute an offer or solicitation and this notice shall not be construed as an offer of sale in any other fund managed or advised by 1OAK Capital Limited or Credit Suisse (Luxemburg) S.A. 

Any investment in the Fund should be based on the full details contained in the Fund’s Supplement Prospectus and Key Investor Information Document which together with the White Fleet SICAV Prospectus can be obtained from the Credit Suisse (Luxemburg) S.A.

Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although neither Credit Suisse (Luxemburg) S.A. nor 1OAK Capital Limited accepts liability for the accuracy of the contents. The Investment Manager for the fund, 1OAK Capital Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Funds regulated under UCITS must abide by investment restrictions.

This notice shall not be construed as an offer of sale in the Fund. No reliance may be placed for any purpose on the information and opinions contained in this document or their accuracy or completeness. 1OAK believes the information or opinions contained in this document to be reliable but does not warrant its accuracy or completeness. The estimates, investment strategies, and views expressed in this document are based upon current market conditions and/or data and information provided by unaffiliated third parties and is subject to change without notice.