Data is at market close and rounded to 2 decimal places.
- Fund overview
- Investment approach
- Risks
The fund aims to achieve long term total returns by investing in a portfolio of North American companies.
The managers believe that a best ideas approach to investing will give investors the greatest opportunity to benefit from the growth in the US economy.
Key points:
- The fund management approach has a strong emphasis on stock selection based on the individual attributes of a company (this management style is known as taking a bottom-up approach).
- The Fund Managers seek to beat the S&P 500 over an investment cycle although this is not guaranteed.
- Our investment universe will include all companies in the Russell 3000 index which accounts for 98% of the US stock market.
- 35-45 holdings; a concentrated high conviction approach.
- Managed by experienced US equity managers Nick Ford and Hugh Grieves.
We have a bottom up approach, which means we will build a portfolio by focusing on selecting stocks which we believe to have the best opportunities within their industry or sector. We choose these stocks in the belief that they are able to deliver consistent and predictable growth in cash flow over time. We aim to find businesses which are resilient to external forces (such as competition, suppliers, customers and technological change) that can knock companies off a path of steadily compounding profits. Ideally we look for; companies with highly recurring revenues or frequent small purchases by customers, limited need for finances to support the growth of the business, and high barriers to entry (obstacles that prevent new competitors from easily entering an area of business). We believe that only a small group of all quoted companies fit such criteria. Such companies we believe we are able to model and forecast, and hence value with a higher degree of confidence than the average company.
Once we have identified companies that, one day, we would like to invest in, we then wait patiently for an opportunity to acquire the shares at a reasonable price. A reasonable price is one where we have an opportunity to achieve a profit and dividends if the companies perform as we expect but importantly, one where we have a margin of safety to limit losses if the unexpected does happen. Sometimes companies that we hold achieve valuations which we believe are excessive and overly optimistic. When this occurs, we will trim or sell our investment and look to reinvest our capital back into another opportunity which offers a potential superior reward for the risk. If we cannot find an opportunity to immediately re-invest, then we will hold cash rather than make a bad investment.
- The value of investments may fluctuate which will cause fund prices to fall as well as rise and investors may not get back the original amount invested.
- This fund may experience high volatility due to the composition of the portfolio or the portfolio management techniques used.
- For funds investing globally, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment.
Objective and investment policy
To achieve long-term total returns (the combination of income and capital growth). There is no guarantee that a positive return will be delivered. The fund will invest at least 70% in the shares of North American companies but may also invest in other funds and cash.
Fund facts
| Fund size | £746.1m |
| Fund launch date | 18 March 2013 |
| IA sector | North American |
| Fund type | OEIC |
| Base currency | GBP |
| Valuation point | 12:00 midday |
Accounting dates | Final - 31 May Interim - 30 November |