Large and mega cap US equities with a value-based approach
Prices as at 10 Aug 2022.
Fund commentary last updated 12 Oct 2021.
Past performance is not an indication of future performance.
Capital at risk.
|Dividends paid||25 Mar, 24 Jun, 24 Sep, 18 Dec|
|Standard Initial Charge||0%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||0.6%|
|Ongoing Charges Figure||0.63%|
The process is based on bottom-up fundamental research with 400 company meetings a year. The managers look at three main criteria to find stocks with long-term staying power. These are a company’s Valuation and understanding what is priced in, the External Environment such as economic conditions and industry structure and finally Internal Characteristics incorporating management, use of cash flow and balance sheet strength. The managers look for the ‘Perfect Story’ – a company ticking all three boxes – but accept that there will be a trade-off between each criterion. To get a stock in the portfolio an analyst will typically write a 40-60 page report outlining the company’s ability to meet the three selection criteria. The analyst also creates worst, base, and best-case scenarios for the stock. If an idea has merit the analyst presents it to the sector committee. A devil’s advocate researches the stock and looks to pick holes in the analysis. Ideas that pass this committee are referred to the investment committee which chooses the portfolio. A typical stock would be a business with strong finances and average growth prospects but trading on an attractive valuation versus its history and relative to the sector. These are called compounders and make up most of the portfolio. In addition, the managers also look at above average growth, cyclical, and deep value stocks.
Past performance is not a guide to future performance. View full risk warning