Light to mid green, UK ethical equity strategy, with a bias towards large-cap quality companies.
Prices as at 17 Aug 2022.
Fund commentary last updated 01 Nov 2021.
Past performance is not an indication of future performance.
Capital at risk.
|Dividends paid||31 Mar, 30 Sep|
|Standard Initial Charge||0%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||0.85%|
|Ongoing Charges Figure||0.87%|
The portfolio is constructed on a bottom-up basis and from an investment universe of 200 stocks – 100 from the UK and the rest from the US and the EU. These companies meet Troy’s definition of quality, namely recurring revenues, predictable growth, durable competitive advantages, and high free cash flow. Ure seeks companies with pricing power and who are protected by high barriers to entry such as a strong brand, relationships, networks, and intellectual property. He also wants to find sound balance sheets, so that management teams can allocate capital flexibly and act in the best interests of shareholders. The process draws the fund towards certain sectors, particularly consumer goods, healthcare, and business software. It tends to avoid more cyclical sectors. The next part of the process is to use the VigeoEIRIS negative screen on the stock universe. Ure looks for ESG factors which could impact long-term returns from a particular business, such as environmental challenges and issues that might result in legal or regulatory challenges, fines, or reputational damage. Exclusions include alcohol, gambling, pornography, fossil fuels and tobacco products. The next step is valuation, with Ure looking to buy companies when their shares are trading at a price which he believes significantly underestimates future cash flows. Macroeconomic research plays a part in the process, with Ure and his team focused on credit cycles and identifying unsustainable economic trends.
Past performance is not a guide to future performance. View full risk warning