The fund was launched in April 2011. It follows a disciplined value investing strategy, seeking to deliver superior investment returns to the wider equities market (MSCI World) over the long term. 
 

The fund:
  • Focuses on strong companies with above-average returns on capital over a business cycle

  • Follows a highly disciplined value investing approach to buy these businesses when out of favour and trading at a significant discount to their intrinsic value.

  • Offers diversified exposure across industries and geographies, through a portfolio of 40 to 70 stocks.

February 2019 - Latest commentary


World markets rose in the low-mid single digits in USD terms, driven by the US and European markets, prolonging the strong January rally. This result was supported by strong job creation in the US, a pause in the Fed’s rate hikes, as well as Donald Trump’s goodwill to conduct trade talks with president Xi.

These positive developments were cooled by a prolonged Brexit process in the UK; low growth and IFO figures in Europe; and weak Philly Fed and retail indicators in the US.

In this environment the USD strengthened against the main currencies, while the Oil price continued rising, reaching $65 as Saudi Arabia’s largest site ran into production problems and as Nigeria approaches elections. Industrials and IT performed the best with telecoms and discretionary lagging the overall market.

The fund underperformed the market by one point on the back of our stock selection in Healthcare and IT, where UnitedHealth Group, HP and Cigna Corp all fell in the double digits. On its earnings release HP disclosed a tough pricing environment as well as share losses due to a channel mix shift toward online. While these facts affect our short term estimates they have very little effect on the long term cash generation capabilities of the business.

UnitedHealth and Cigna were both the victim of political news, as democrats proposed the “Medicare for All” bill aimed at galvanizing the party’s liberal base. Abolishing private healthcare would indeed permanently impair the value of a plethora of companies in the space, but we view this outcome as exceedingly unlikely and therefore any price reaction immensely premature.

Conversely, the fund was rewarded by a broad selection of companies – eBay, Zimmer, Western Digital and Vista Land. Notably, eBay rose in the double digits, continuing its meteoric rise since the activist fund Elliot took a stake in the company and addressed the board with a value creation plan. Zimmer, Vista Land and Western Digital performed strongly on not much news, but as is often the case, extreme undervaluation can become its own catalyst.

Fund factsheets
Monthly snapshot.
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Fund supplements
Regulatory documents.
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Fund KIIDs
Key investor information.
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Quarterly newsletters
Fund and market updates.
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Fund disclaimer

Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. A table with five years performance is available in the fund factsheets below.

The fund has holdings which are denominated in currencies other than sterling and may be affected by movements in exchange rates. Consequently the value of an investment may rise or fall in line with the exchange rates.

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