The Fund's investment objective is to provide investors with an absolute return (irrespective of market conditions) by taking both long and short positions in equities issued by companies globally. The Fund will seek to invest in companies which are industry market leaders with sustainable business models and companies which demonstrate a competitive advantage in relatively new and underdeveloped markets.
Latest Meeting Note
Meeting 05 Oct 2021
The strategy seeks to capture the long-term value creation generated by the world’s strongest companies. The fund is managed on a fundamental basis, and at its heart is a high conviction, low-turnover 25-45 stock long book. This is popul... Read more
The strategy seeks to capture the long-term value creation generated by the world’s strongest companies. The fund is managed on a fundamental basis, and at its heart is a high conviction, low-turnover 25-45 stock long book. This is populated with “World Class Companies” where the team have identified >10% IRR potential based on rolling 3 year return targets. ESG analysis is integrated into the stock research process and focuses on sustainability through a number of lenses, including conduct responsible to the environment (particularly carbon), identifying good business culture, and management teams who manage the balance between maximising present earnings and the long-term health of the company. The long book is further split into two tiers, 60-100% of positions meet all sustainability criteria's, whilst 0-40% are on track to meet the criteria over the next five years, with the PM looking to extract alpha from the ESG transition. The short book is designed to limit market directionality, reduce volatility, and provide an additional source of alpha over the long run. There is a focus on minimising basis risk between the long and short books, and as such the short book is multi-stock, multi-sector, and index shorts. The fund applies a stricter variation of the Man Group RI Exclusion List that precludes it from investing in companies involved in controversial arms, tobacco, nuclear weapons, and companies that have greater than a de minimis amount of revenues associated with coal production and coal based energy. The team also excludes companies that fundamentally conflict with their sustainability metrics, and those that do not have the potential of meeting sustainability goals within five years. The long book is typically run around 110% and the short book at 85%, leading to a conservativeaverage net exposure of 25%.