London, 1 September 2021 – Assets under management (“AUM”) for the Stonehage Fleming Global Best Ideas Equity Fund have passed the USD2bn mark.
Since launching in August 2013, the fund has attracted assets from private, professional and institutional investors. It has returned 118.8% (17.0% p.a.)* over the last five years, compared to the MSCI World’s 97.8% (14.6% p.a.)** (US $ terms)***.
* Source: Stonehage Fleming Investment Management Ltd (SFIM), for period 1 July 2016 to 30 June 2021 (Stonehage Fleming Global Best Ideas Equity Fund (D Share Class) Factsheet).
** Source: MSCI World All Country $ TR, for period 1 July 2016 to 30 June 2021. Source: Bloomberg, MSCI.
*** Past performance is not a guide of future returns. If the information is not displayed in your base currency, then the return may increase or decrease due to currency fluctuations.
Fund Manager Gerrit Smit manages a concentrated, high conviction portfolio of 28 businesses that are chosen for their sustainable growth potential, strong management team, strategic competitive edge and value. The portfolio has very low turnover: over the past 12 months Gerrit has only sold two positions, with the fund turnover well below 10%. Current investments include some of the world’s best known companies such as Amazon, PayPal, Microsoft, Nike, Adobe and Estée Lauder.
Commenting on the current market environment, Gerrit Smit said: “The global fundamental economic recovery for 2021 is well underway, coming off the low base of 2020. We believe we are now into a new positive global economic cycle, well supported by the successful vaccine roll out programmes.”
“Some investors are challenged with perceptions of high valuations. They often underestimate the value of sustainable growth and get overwhelmed by current valuation multiples. The best opportunities lie in strategic investing with an eye on the horizon for long-term compounded growth, combined with an improving short-term outlook.”
Andrew Clarke, Group Head of Business Development said: “In under two years, our Global Best Ideas Equity Fund has doubled in size to exceed 2bn USD. The investment philosophy that underpins the Fund’s strategy, (i.e. that a good business remains a good business irrespective of short-term share price volatility), clearly resonates with investors.
We are excited by the Fund’s growth potential and look forward to raise the Fund’s profile further amongst wholesale investors this year.”
On the continuing impact of Covid-19, Gerrit Smit adds: “PayPal and Amazon (and many others’) futures are in the process of arriving two or more years early, without all the usual necessary investment required to attract all those new clients. Their future profitability therefore also arrives earlier, and their share prices have to reflect that. We believe their future growth trajectory has been enhanced by COVID-19.”
“Whilst the high street is structurally damaged, those businesses that have developed their online capabilities well are in the process of taking permanent market share. They should also enjoy better margins, with direct sales replacing those through wholesalers and retailers.”
We do not intend for this information to constitute advice or investment research and it should not be relied on as such to enter into a transaction or for any investment decision. Past performance is not a reliable indicator of future results and investments may go down as well as up. All investments risk the loss of capital. Whilst every effort is made to ensure that the information provided is accurate and up to date, some of the information may be rendered inaccurate in the future due to any changes. Where an investment is denominated in a currency other than the currency where the investor is resident, investment returns may increase or decrease as a result of currency fluctuations. The distribution or possession of this article in certain jurisdictions may be restricted by law or other regulatory requirements. Persons into whose possession this document comes should inform themselves about and observe any applicable legal and regulatory requirements.
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