Investment objective
The fund aims to provide sustainably compounding performance from global equity markets over the economic cycle on a total return over a long-term investment horizon.
Investment approach
The fund adopts a long-term investment approach, unconstrained by traditional benchmarks, enabling concentrated focus on a selection of up to 25 ‘world class’ mega-caps which, over time, aim to deliver sustainable above average returns through the strength of their market position in an attractive industry.
Particular focus is given to ‘quality’, compounding stocks which are characterised by their ability to generate sustainably growing excess cash returns over their equity’s cost of capital, part of which is expected to be returned to shareholders. Other quality characteristics include management and balance sheet features, as well as a relatively predictable earnings profile.
The fund’s focus on high-quality stocks, across a number of attractive industries, balances its high concentration, low turnover approach. The fund maintains minimum levels of diversification and liquidity risk management by adhering to the UCITS regulated fund framework.