Grant Samuel launches three global equities funds (mFund codes GSF01, GSF02, MUN01)
Grant Samuel launches three global equities funds
Global equities – for income or growth
Investors live in an increasingly globalised world, and global companies have become an everyday part of our lives. When you think about the products and services you use each day, you'll uncover a wealth of potential investment opportunities. When you reach for your Samsung Galaxy in the morning and check Facebook, breakfast on Quakers Oats and Nescafe, and clean your teeth using Oral B products, you're accessing the products and services of many companies with global reach. As well as being available in Australia, products and services provided by these companies are also available around the world. Grant Samuel Funds Management (GSFM) offers two quite different global equity funds through mFund – one focused on generating income, the other focused on growth.
Grant Samuel Epoch Global Equity Shareholder Yield Funds
Available as a hedged or unhedged investment, the Grant Samuel Epoch Global Equity Shareholder Yield Funds (the Funds) aim to deliver attractive total returns with an above-average level of income by investing in a diversified portfolio of global companies with strong and growing free cash flow.
In managing the Funds, Epoch Investment Partners (Epoch) looks for companies that are sustainably growing their free cash flow year on year and returning that cash to shareholders through consistent and increasing dividends (no cancellations and minimal reductions), share buybacks and/or debt reduction.
By actively seeking companies with strong shareholder yield characteristics, Epoch's goal is to construct a portfolio of 90-120 stocks that will achieve a higher level of yield than other income options, as well as capital growth. Investing in such companies enables the Fund to deliver on its objective – to provide an above-average level of income to investors.
How are these Funds different to other Global Equity Funds?
There are a number of features that differentiate the Grant Samuel Epoch Global Equity Shareholder Yield Funds from other global equity products:
- Provides the benefits of diversification of both portfolio assets and income sources
- A focus on the growth and allocation of free cash flow rather than traditional accounting metrics (such as the P/E ratio)
- Traditional equity dividend strategies tend to focus solely on cash dividends, while shareholder yield takes a broader approach; it focuses on cash dividends, share buybacks, debt reduction and cash flow growth
- Most active global equity managers are charged with maximising return per unit of risk, where the global shareholder yield strategy seeks to minimise volatility around a level of return sought.
The Fund's focus on shareholder yield characteristics means it generally complements other global equity strategies that primarily focus on traditional valuation methods and capital appreciation.
Munro Global Growth Fund
The Munro Global Growth Fund (the Fund) aims to provide investors with meaningful, risk-adjusted, absolute returns through exposure to global growth equities over a medium to long-term horizon.
As an independent, global absolute return equity manager, Munro has a core focus on growth equities. The investment philosophy that underpins the Fund is focused on the simple task of identifying and investing in companies that have the potential to grow at a faster rate, and on a more sustainable basis, than the peer group.
Munro identifies sustainable growth trends that are under-appreciated, not well understood and mispriced by the market – and the stocks that are winners and losers as a result. As experts in the space, Munro leverages its global access to identify key ‘Areas of Interest' for further investigation.
Munro's proprietary investment process, worldwide network and unique knowledge base provide points of difference from other global equity funds. The team seeks to invest in, and benefit from, some of the key structural changes that occur in our world today.
How is this Fund different to other Global Equity Funds?
There are several features that differentiate the Munro Global Growth Fund from other global equity products:
- Absolute Return: Munro only runs international absolute return funds. It is a global equity long/short manager that targets meaningful positive returns through the investment cycle, while maintaining a capital preservation mindset.
- Active: Munro's team covers the miles, continuously meeting with global company management teams to find global investment opportunities that are underpinned by structural growth tailwinds.
- Growth: Munro identifies sustainable growth trends that are underappreciated and mispriced by the market; investors can benefit from both the resulting winning (long) and losing (short) stock positions.
- Disciplined: Munro conducts a comprehensive and disciplined investment process.
- Stock picker: The investment approach generates a high hit rate of performing ideas and provides a focused, actively managed exposure to a concentrated portfolio of 30-50 equity positions.
The Fund's focus on growth and key structural changes, while being index unaware, means the Fund generally complements other global equity strategies that primarily focus on relative returns.
For more information go to http://www.gsfm.com.au/mfunds/
Grant Samuel Fund Services Limited ABN 48 129 256 104 AFSL 321517 (Grant Samuel Fund Services) is the responsible entity of the Grant Samuel Epoch Global Equity Shareholder Yield (Hedged) Fund ARSN 130 358 440, Grant Samuel Epoch Global Equity Shareholder Yield (Unhedged) Fund ARSN 130 358 691 and Munro Global Growth Fund ARSN 612 854 547 (collectively, the Funds) and is the issuer of this information. The Funds are registered as managed investment schemes under the Corporations Act 2001 (Cth). Grant Samuel Fund