IFSL RC Brown UK Primary Opportunities | Fund Update | February 2026
February: ‘Old economy’ powers FTSE to record high
The UK market rose over 6% in February in what has proved an extremely strong start to the year. The outlook for the UK economy continues to brighten, with government borrowing lower than expected, inflation falling (now 3.0%) and an interest rate cut expected as early as this month. The UK market, often derided for having ‘old economy’ stocks such as banks, mining and utilities, is proving a useful haven from the falling valuations in sectors that AI is perceived a threat to. This is not just technology companies but companies that are data led such as The London Stock Exchange, Experian, RELX, Autotrader and Rightmove. Whilst we continue to hold those mentioned in bold, we are keeping a close eye on the potential impact from AI but also not wishing to sell high quality companies with attractive moats that continue to report strong earnings.
On a more cautious note, oil hit seven month highs on rising tensions between the US and Iran prior to a month end attack (after market close) on Iran by the US and Israel that resulted in the death of Iran’s supreme leader. In what is a highly fluid situation, not only have oil and gas prices surged given the potential shock to energy supplies, a risk off trade has gripped the market in the first few days of March.
We frequently cite M&A activity as a sign of UK market undervaluation. Fund giant Schroders became the second FTSE company to agree to a takeover, by US asset manager Nuveen.
In what proved a busy month for primary opportunities – Yellow Cake, Roadside Real Estate, and Iforex were all added to the Fund.
In February the IFSL RC Brown UK Primary Opportunities fund returned 4.2% compared with 6.5% for the FTSE All Share and 3.9% for the IA UK All Companies sector, all on a total return basis.
Purchases
Yellow Cake is a pure play uranium investment company. Uranium prices are rising and anticipated to continue to strengthen further as a result of the rising demand for energy security, which in part will be met by an increase in nuclear power stations. We acquired the shares as part of a $110m fund raise at a discount to the share price and net asset value of the company.
Roadside Real Estate operates petrol stations and EV charging sites located on major arterial roads in the UK. The top five operators, such as BP and Shell dominate the market but below this is a very fragmented market that Roadside aims to consolidate. We acquired the shares as part of an equity fund raise to increase their number of sites to 21.
Iforex Financial Trading Holdings is an online trading technology company offering customers in over 30 countries the ability to trade shares and CFD’s (contract for differences). A profitable and cash generative company, we acquired the shares at IPO with the proceeds to be used to increase client numbers, enter new territories and invest in AI and further automation.
Sales
We exited the holding in Kitwave following a profit warning. The shares were largely unmoved as it is subject to a takeover offer, and we felt in the circumstances it was best to take profits as the potential for a higher bid had disappeared. We also trimmed holdings in large caps M&S, Melrose, SSE, Tesco and HSBC.
Cumulative Performance (Total Return %) – To 31 January 2026
| Fund/Benchmark Name | 3M | 6M | 1Y | 3Y | 5Y | 10Y | Since Inception (28/05/1997) |
| IFSL RC Brown UK Primary Opportunities P Acc | 9.2 | 14.1 | 22.5 | 37.4 | 36.4 | 122.1 | 657.2 |
| Quartile Ranking IA UK All Companies | 2 | 2 | 2 | 3 | 2 | 2 | 2 |
| IA UK All Companies | 8.1 | 12.1 | 18.7 | 34.2 | 49.0 | 104.1 | 457.2 |
| FTSE All Share | 12.2 | 18.9 | 27.3 | 51.6 | 88.7 | 151.0 | 587.9 |
Source: FE: 28/02/2026
Discrete Annual Performance (Total Return%) – To 31 January 2026
| Fund/Benchmark Name | Year to 28/02/2026 | Year to 28/02/2025 | Year to 28/02/2024 | Year to 28/02/2023 | Year to 28/02/2022 |
| IFSL RC Brown UK Primary Opportunities P Acc | 22.5 | 14.6 | -2.0 | -5.8 | 5.4 |
| Quartile Ranking IA UK All Companies | 2 | 2 | 4 | 4 | 3 |
| IA UK All Companies | 18.7 | 12.9 | 0.1 | 3.2 | 7.6 |
| FTSE All Share | 27.3 | 18.4 | 0.6 | 7.3 | 16.0 |
Source: FE: 28/02/2026
Please be advised that the past is not necessarily a guide to future performance. Investments and the income derived from them can fall as well as rise and the investor may not get back the amount originally invested.
