our thinking.
Our fund managers´ investment philosophy allows them to adopt a high conviction approach to fund selection. Their belief in first-hand research and in-depth analysis means they can select funds on the basis of their ability to meet the long-term objectives of the fund instead of knee-jerk reactions to short-term market trends, which is the key to outperforming the benchmark.
They assess everything about a fund before investing in it, from asset allocation and past performance to market context, financial backing, and even the circumstances of the fund manager. Our fund managers are so confident in this all-encompassing approach that they invest their own money in the funds they manage. Another excellent example of the alignment of interests between manager and investor that characterises our Multi Manager fund range.
our fund managers:
- Are focused on our investors and giving them the best returns over the long-term.
- Believe in active management and active asset allocation.
- Are multi-asset investors.
- Base their active fund selection on in-depth research with ongoing monitoring and board level reviews.
- Avoid over-diversification by employing a high conviction approach that typically results in 15-20 underlying fund holdings in each portfolio.
- Build our portfolios with the aim of recognising and avoiding unwanted risks.
What our fund managers say:
“We are extremely pleased to have delivered strong returns for our investors in 2009 on both an absolute return basis (with all three Trusts up between 22% and 32% after all fees) and a relative return basis (with all three Trusts posting first quartile returns, outperforming their respective benchmarks by over 6% after all fees). With this coming after the Trusts' outperformance in 2008, in what were very different but equally challenging and difficult market conditions, the performance since inception for our investors remains first quartile, with all Trusts ahead of their benchmarks by between 8% and 15% after all fees. We believe this is a very credible achievement and we remain as focused as ever in our attempt to continue this performance in the years ahead.”
Alan Thein and Tim Gardner, February 2010.
performance fee:
To maximise the potential of our Multi Manager Fund range, all three funds include a performance fee. This provides an additional incentive for fund managers to continually improve on their performance, which in turn can help you achieve greater long-term returns.
The fund manager´s performance fee is in addition to the normal fund management charges. The method of calculating is the same for all product wrappers.
What are the advantages of investing in a fund with a performance fee?
- The fund manager is motivated to continually improve upon the performance of the fund.
- The fee helps us attract high quality fund managers for greater potential performance.
- If a performance fee is not earned, fees are kept to a minimum.
For a full explanation of the performance fee, please click here to download the Adviser guide.
