Fund Insights

FSB approval for Global Leaders Equity Fund - 12 March 2014

The FSB approved fund, with current AUM equivalent to R583m ($54.5m), offers a concentrated global portfolio of around twenty shares which are expected to produce above average total returns over the medium to long term.

Jersey based Veronika Pechlaner, who manages the Ashburton Global Leaders Equity Fund together with investment director Nick Lee, said: “Our focus is on finding twenty quality mega caps which are global leaders within attractive industries.”

“Through their market position and sustainable competitive advantage we expect these global leaders to consistently generate and grow excess cash returns over their cost of capital, part of which they will return back to shareholders in the form of dividends and share buybacks.”

As at December 31st 2013, the top five companies in the portfolio were JPMorgan Chase, Visa, General Electric, WPP and Siemens.

Pechlaner added: “While volatility could pick up from historically low levels, global equities remain our preferred asset class from here, and we believe the quality of earnings will potentially become more important during the course of 2014, after the significant rerating in valuations we have seen in recent years. Given its focus on quality and sustainable leadership, we believe the Global Leaders Equity Fund is well positioned to benefit from these trends”

The investment style of the fund combines Ashburton Investment’s top-down, macro led views with a particular longer term focus on quality companies for this relatively low turnover portfolio.

The Global Leaders fund is also UCITS (Undertakings For Collective Investment In Transferable Securities) compliant.

UCITS is a set of European Union Directives that allows for the distribution of collective investment schemes among countries within the European Union on the basis of a single authorisation from one member state. It is designed to maintain high levels of investor protection.

By adhering to the UCITS framework, the fund will implement its sound risk management policies related to diversification and liquidity amongst others.

Ashburton Investments is FirstRand Group’s fourth financial services franchise alongside FNB, RMB and WesBank. It launched on June 11th 2013 and has over R112bn assets under management. For more information and a full list of funds visit:

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Ashburton Global Leaders Equity Fund
ISIN LU0923646821 Sedol B8DT4F2 Bloomberg AISGLRU LX
Currency US dollar Risk rating Moderate to high Domicile Luxembourg
Launch date 02/09/2013 Fund size 112.3600 m Dealing Daily
NAV 14.9080 Daily change -0.31% Price date 04/06/2020
Cumulative performance since 2013: 3.1%

*Hover on chart to see values