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Sanlam’s Global High Quality UCITS Fund celebrates 3rd anniversary and exceeds £125/$150m milestone 

 

Sanlam Private Wealth’s (Sanlam) Global High Quality UCITS Fund (GHQ) is celebrating its third anniversary, having recently exceeded £125/$150 million in assets under management.
 
The Fund, managed by Pieter Fourie and supported by a dedicated team of eight investment professionals, is ranked number two globally over 3 years based on Financial Express data for the equity international peer group. Since inception, the Fund has beaten both the broader MSCI World Index and FTSE All-Share Index by some margin. It also holds a “5 crown” rating from Financial Express.
 
The Fund’s performance is backed up by the manager’s nearly 9 year old global leading track record with a 211% return since 30 April 2008.  The Fund invests in global equities with a high quality bias, and operates on a Long/Cash basis, allowing the manager to de-risk the portfolio by moving between equities and cash (maximum 22%) during times of uncertainty. It typically invests in companies with high returns on capital, low leverage, enduring businesses with a sustainable competitive advantage that produce significant free cash flow after capital expenditure. In terms of stock selection, Unilever, Diageo, Johnson and Johnson and Microsoft all significantly aided positive performance.
 
Pieter Fourie, Head of Global Equities at Sanlam, said: “We’re delighted with the Global High Quality Fund’s performance over the past three years. Our focus has always been to concentrate on high quality firms which will provide solid returns for our clients and performance since inception vindicates this approach.”
 
Gideon Nell, Global Head of Sales said: “In an environment of all time high equity markets and all time low bond yields, the strategy has particular appeal to investors who are looking for growth and income with a level of built-in protection without the use of any derivatives as was evidenced during the global financial crises”
 
The allocation to emerging market listed companies is limited to no more than 30% of the assets. The investment process is unconstrained, and the Fund’s emphasis is on companies with predictable revenue growth that produce sustainable economic value over the long-term. It is high conviction and benchmark agnostic, with sector and regional positioning driven by bottom-up stock selection.
 
The Fund’s top 10 holdings are as follows:

Company

Weight

Unilever

4.1%

Medtronic

3.9%

Alphabet

3.8%

Diageo PLC

3.5%

Moody's Corp

3.2%

PayPal Holdings

3.1%

Roche Holding

3.1%

Yum China Holdings

3.1%

Johnson & Johnson

3.1%

Nestle

3.1%

 
Pieter Fourie, continued: “Our long-term investment horizon and focus on quality, means we select stocks that compound returns by returning excess cash flow to shareholders through dividends and share repurchases. The important element is the snowballing effect of compound earnings on earnings, which is a very powerful contributor to total returns.
 
Whilst we acknowledge the power of compounding earnings over time, ultimately the ability of a business to generate sustainable free cash flow is a key driver of long-term returns.  Over time, capital appreciation becomes a less important component of total shareholder returns as an investor accumulates excess cash flow through dividends and share repurchases.”
 
Performance overview
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Cumulative performance for period ending 28.02.2017

 

2014

2015

2016

2017

Inception

SPW Global High Quality Fund

12.5%

12.1%

28.7%

6.7%

73.1%

MSCI World Net Total Return

11.4%

4.8%

28.3%

4.6%

56.8%

Sector average

6.7%

2.9%

23.9%

4.3%

41.9%

Relative to benchmark

0.9%

7.0%

0.3%

1.9%

10.4%

 

Performance

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

YTD

2017

1.4%

5.2%

 

 

 

 

 

 

 

 

 

 

6.7%

 
2016

1.6%

1.1%

2.4%

-1.5%

2.5%

9.7%

4.6%

1.0%

2.2%

4.5%

-4.2%

2.2%

28.7%

 
2015

2.7%

3.2%

0.2%

-0.1%

1.0%

-4.9%

3.2%

-3.7%

0.3%

6.2%

2.8%

1.1%

12.1%

 
2014

 

 

1.6%

1.5%

2.6%

-2.8%

-2.1%

4.1%

0.1%

3.0%

5.6%

-1.5%

12.5%

 
 
-Ends-

 

Notes to editors
 
Sanlam Limited is an international AA- rated financial services group with a listing on the Johannesburg Stock Exchange and a market capitalisation of £7 billion. Established in 1918, the group provides a range of services to over 10 million clients globally, including insurance, financial planning, investments and wealth management.
 
Sanlam UK is led by CEO Jonathan Polin. The firm consists of a number of long established businesses, including:

  • Sanlam Private Wealth: The discretionary fund manager with £2.7 billion of client assets under management

  • Sanlam Investments & Pensions: The life and pensions business with in excess of £2.7 billion of assets under administration

  • Sanlam FOUR: The boutique asset management and fund business which manages over £5.9 billion in both single strategy and long only funds and specialist multi-asset solutions.

  • Sanlam Wealth Planning: The national financial adviser with £1 billion of client assets under advice and 70 UK-based advisers

  • In total, the firm has nearly £9 billion of assets under management or influence

  • Sanlam UK attained its size, strength and reputation by leveraging the benefits of having a large secure South African parent company while focussing on individual client service delivered locally in the UK.

 
 
For more information please contact:      
Teamspirit Public Relations on
0207 360 7877 / Sanlam@teamspiritpr.com

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.