Investment objective

The investment objective of the Fund is to provide income and capital growth over the long term (5 years +). The Fund aims to achieve this objective by investing at least 80% in a diversified portfolio of shares in companies in any geographical location. The Fund may also invest in other transferable securities such as government bonds and corporate bonds, collective investment schemes (including those managed or operated by the ACD), money market instruments, deposits, cash and near cash. Derivatives (sophisticated investments linked to the rise and fall of one or more underlying assets) may be used for efficient portfolio management purposes.

It is expected that the portfolio will be relatively concentrated (typically around 30-39 stocks). The Fund seeks to generate income and capital growth with a robust and disciplined investment process that focuses on investing in companies typically offering an attractive combination of growth, profitability, and stability, and holding them for the long term (5 years +).

Fund information

Benchmark FR Global
Typical no. of holdings 30-39
Fund structure Open-Ended Investment Company
Launch date December 2019

 

Portfolio construction

The fund is global, large-cap, and long only. Although our bottom-up approach is relatively unconstrained, we do have limits in place for risk management purposes. We will not run an individual position size beyond 6.0%, and we have regional and sector limits at +/− 20 percentage points relative to the benchmark. Given the slow-moving, deliberate nature of our trading decisions, we may take time to build up position sizes. We exclude companies involved in armaments, gambling, tobacco, the production of alcohol, or the extraction of fossil fuels.

Investment process

  • Our starting point is a global large-cap universe. We filter the universe by quality and valuation. Our fundamental research of a company always involves a quantitative assessment of quality.
  • At the screening level, we begin with a simple yet highly robust assumption: quality companies typically trade at premium valuations. We seek to identify those quality companies currently trading at a significant discount to their average premium valuation.
  • Next, we screen the screen, looking to filter out companies with inappropriate leverage and businesses too complex to understand. Following this, we initiate our fundamental analysis on the chosen few.

Essential documents

Top 10 holdings

Alphabet Inc 4.13%
Colgate-Palmolive Co 4.00%
Trend Micro Inc 3.96%
London Stock Exchange Group PLC 3.57%
PayPal Holdings Inc 3.42%
Ralph Lauren Corp 3.31%
Akamai Technologies Inc 3.23%
Sanofi SA 3.16%
Amazon.com Inc 3.12%
Pearson PLC 3.05%
Data as at 30 September 2024
If you would like more information, please contact us.

Risk warning:
The value of investments and the income therefrom is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment, you may get back less than you originally invested. The value of overseas securities will be influenced by the rate of exchange which is used to convert these to sterling. The opinions expressed herein are those of Cantab Asset Management Ltd and should not be construed as investment advice. Past performance is not a guide to future performance.