IFSL RC Brown UK Primary Opportunities | Fund Update | October 2025
October: FTSE hits record high
It proved a buoyant month for global equities as trade tensions between the US and China were dampened as an outline framework agreement on trade was reached – therefore reducing the potential of a trade war which would inevitably have a negative impact on global economic growth.
In the UK, the Bank of England kept interest rates on hold, and inflation remained steady at 3.8%, which was lower than expectations. This helped steady gilt yields whose ten-year rate had in September hit its highest level this century. Much focus remains over the UK’s budget deficit and how Chancellor Rachel Reeves intends to tackle it in November’s budget. Tax rises appear a certainty but were the Chancellor to introduce some caution on spending, it would be particularly welcomed by gilt markets.
This month we saw a welcome re-opening of the London IPO market and we participated in three significant deals. This augurs well for future deals, and we anticipate a growing pipeline into the new year. As ever, when we meet companies at the IPO stage, we are keen for management to demonstrate that expectations for future growth are sensible and achievable. A company priced moderately at IPO that then uses its IPO proceeds to grow the business and achieve and even beat its expectations, we would expect to provide strong returns for investors over the medium and long term.
Shawbrook, Princes and The Beauty Tech Group were all purchased at IPO, offering our investors access to a variety of sectors. ITV and Twenty Four Income Ltd were also added as holdings.
In October, the IFSL RC Brown UK Primary Opportunities fund returned 3.2% compared with 3.7% for the FTSE All Share and 3.2% for the IA UK All Companies sector, all on a total return basis.
Purchases
Shawbrook: A UK challenger bank focused on savings and lending to small and mid-sized companies and individuals. We consider it to be the fastest growing UK bank and acquired the shares at IPO.
The Beauty Tech Group (TBTG): A company specialising in at-home beauty devices such as LED face masks and laser hair removal. It is a market leader in its field and given its record for innovation, we anticipate it growing its product offering. The shares were purchased at IPO and the funds raised used to fund its expansion, particularly in the US.
Princes Group: A UK focused food and drink manufacturer best known for Princes tuna and brands such as Napolina and Crosse & Blackwell. Whilst organic growth rates are modest, the company is debt free and will use the monies raised at IPO to buy other well known brands which its larger peers view as non core.
ITV: The UK’s largest commercial broadcaster, best known for its free to air channels funded by advertising and an expanding digital/streaming presence. We acquired the shares at a discount as part of a placing by Liberty Global, which halved its holding. We consider the shares to be modestly valued and an attractive dividend yield of 7%.
Twenty Four Income Fund: A closed ended investment company that invests in a diversified portfolio of UK and European asset backed securities. The shares were acquired as part of an equity raise to fund investment opportunities. The shares are a useful diversifier to the portfolio and offer an attractive dividend yield of 10%.
Sales
We took profits in Pinewood Technologies and Gamma Communications. Whilst both proved successful investments, recent news flow and share price performance has been uninspiring. Underperformer WH Smith was sold whilst we trimmed the holdings in XP Power, Lloyds and Tesco on strength.
Cumulative Performance (Total Return %) – To 30 October 2025
| Fund/Benchmark Name | 3M | 6M | 1Y | 3Y | 5Y | 10Y | Since Inception (28/05/1997) |
| IFSL RC Brown UK Primary Opportunities P Acc | 4.7 | 12.9 | 17.9 | 36.5 | 60.2 | 96.2 | 589.8 |
| Quartile Ranking IA UK All Companies | 2 | 3 | 2 | 3 | 3 | 2 | 2 |
| IA UK All Companies | 4.1 | 13.3 | 15.5 | 41.1 | 68.6 | 83.3 | 418.8 |
| FTSE All Share | 6.6 | 16.0 | 22.5 | 50.9 | 98.6 | 116.3 | 511.2 |
Source: FE: 30/10/2025
Discrete Annual Performance (Total Return%) – To 30 October 2025
| Fund/Benchmark Name | Year to 30/10/2025 | Year to 30/10/2024 | Year to 30/10/2023 | Year to 30/10/2022 | Year to 30/10/2021 |
| IFSL RC Brown UK Primary Opportunities P Acc | 17.9 | 14.9 | 0.8 | -19.1 | 45.2 |
| Quartile Ranking IA UK All Companies | 2 | 3 | 4 | 3 | 1 |
| IA UK All Companies | 15.5 | 17.8 | 3.8 | -12.9 | 37.2 |
| FTSE All Share | 22.5 | 16.3 | 5.9 | -2.8 | 35.4 |
Source: FE: 30/10/2025
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.
