T. Rowe Price Global Equity Fund
Founded in Baltimore in 1937, T. Rowe Price has grown in to one of the world’s largest fund managers with more than USD$813 billion in funds under management. The company focuses exclusively on investment management; and the company’s key mantra is “if you take care of your clients, your clients will take care of you.”
The T. Rowe Price Global Equity Fund is run by Scott Berg. Generate has had the pleasure of hosting Scott in Auckland twice - most recently in October 2016 - where he described how he has the ability to tap into T. Rowe Price’s 130 Equity Research Professionals, 9 Sector Portfolio Managers and 57 Regional and Diversified Portfolio Managers to assist him with his investment selection.
Scott took over the management of the Global Equity Fund in June 2012 and since then has delivered an annualised return of 19.5% p.a. (net of fees in AUD as at 31 May 2017). Also as of this date some of the fund's largest holdings were in Alphabet (the parent company of Google) Facebook, and Alibaba and it had funds under management of AUD$1.7 billion.
A key differentiator of the Global Equity Fund is its ‘truly global’ nature with investments in approximately 30 countries. This compares with the average of its peer funds of only 18 countries.
Click here for the latest fact sheet.
The Magellan Global Fund
Magellan Asset Management (‘Magellan’) is a specialist funds management business based in Sydney, Australia.
Magellan manages global equities and global listed infrastructure strategies for high net worth, retail and institutional investors. The principals, Hamish Douglass and Chris Mackay, are two of Australia’s leading investment professionals. Their long involvement in M&A activity and corporate advisory work has resulted in invaluable experience and expertise in valuing companies, as well as assessing the macro environment and risk management.
The Magellan Global Fund is a quality-focused, long-only unit trust that invests in a concentrated portfolio of global equities. The investment objectives of the Global Fund are to achieve attractive risk-adjusted returns over the medium to long term, while reducing the risk of permanent capital loss.
As of 30 April 2017 the Magellan Global Fund had AUD$9.2 billion in funds under management and a 5 year return of 18.5% p.a. Some of its largest holdings were in Microsoft Corp, Visa Inc, and Apple Inc.
Click to hear Hamish Douglass Lead Portfolio Manager of the Magellan Global Fund outline the investment objectives, process and differentiating features of Magellan’s approach.
Click here to hear Hamish Douglass's view on global financial markets
Click here for the latest fact sheet.
Berkshire Hathaway Inc
Led by famed value investor Warren Buffet, Berkshire Hathaway's success has been built on the firm's record of acquiring and managing a portfolio of businesses with enduring competitive advantages.
Whether through direct ownership of individual companies or via significant shareholdings, Buffett has typically looked to acquire firms that have consistent earnings power, generate above average returns on capital, have little to no debt, and have solid management teams. Once purchased, these businesses tend to remain in Berkshire's portfolio, with sales seldom occurring.
In the early part of his career at Berkshire, Buffett focused on long-term investments in publicly quoted stocks, but more recently he has turned to buying whole companies. Berkshire now owns a diverse range of businesses including insurance, confectionery, retail, railroad, home furnishings, jewellery, newspaper publishing, and several regional electric and gas utilities. Some of the companies that Berkshire has investments in include Kraft Heinz, American Express and BNSF Railway.
Berkshire Hathaway averaged annual growth in market value of 20.8% for its shareholders from 1965 to 2016 (compared to 9.7% for the S&P 500 with dividends included for the same period).
According to the 2017 Forbes Global List, Berkshire Hathaway is the third largest public company in the world.
Worldwide Healthcare Trust
Worldwide Healthcare Trust Plc (WWH) offers a UK-listed opportunity for capital appreciation through a diversified portfolio of worldwide biotechnology, pharmaceutical, healthcare equipment, healthcare technology and healthcare services companies. To maintain its large cap focus, at least 60% of the portfolio must be invested in stocks with a market cap over USD$5 billion. As a counterweight up to 10% of assets can be invested in unquoted companies. Orbimed Capital, the New York based manager of WWH, is the largest independent specialist investor in the biotechnology and pharmaceutical sectors in the world. It employs over 70 investment professionals and has offices in New York, San Francisco, Tel Aviv, Shanghai and Mumbai. Orbimed has assets under management of approximately USD$15 billion.
As at 30 April 2017 WWH had net assets of GBP 1,085.6 million and had returned 25.7% p.a. over the last 5 years (in local currency).
Click here for the latest fact sheet.
Polar Capital Technology Trust
Polar Capital Technology Trust Plc (PCT) aims to maximise capital growth for shareholders through investing in a diversified portfolio of technology companies around the world.
Managed by a team of dedicated technology specialists, PCT has grown to become a leading European investor with a multi-cycle track record.
PCT believes that “we’re in the midst of a new technology cycle, driven by cloud computing, internet applications and mobility.” The Company seeks to capitalise on such cycles, by gaining exposure to exciting emerging themes and harnessing potential returns through investing in companies believed to have the highest growth potential from across the global technology spectrum.
As at 28 April 2017 PCT managed GBP1,252 million of total net assets and had returned an average of 19.6% p.a over the last 5 years (in GBP).
You can find their latest Monthly Commentary here.
Platinum International Fund
The Platinum International Fund's investment objective is to provide capital growth over the long-term through searching out undervalued listed (and unlisted) investments around the world. The Fund primarily invests in listed securities and typically consists of 100 to 200 securities. Cash may be held when undervalued securities cannot be found. Platinum may short sell securities that it considers overvalued.
As of 31 May 2017 the Fund had A$10.6 billion under management and a return of 12.88% compound p.a. since inception in 1995 (in local currency). This compares with a return of 6.63% compound p.a. for the Fund's benchmark index (the MSCI All Country World Net Index in A$).
The Fund is rated 'Highly Recommended' by Zenith and 'Recommended" by Lonsec. A copy of the latest fact sheet can be found here.
Jupiter European Opportunities Trust Plc
Founded in 1985 as a specialist boutique, Jupiter has become one of the UK’s most respected and successful fund management groups.
Jupiter European Opportunities Trust Plc's objective is to invest in securities of European companies and in sectors or geographical areas that are considered by the Investment Manager to offer good prospects for capital growth. The company adopts a stock picking approach in the belief that a thorough analysis and understanding of a company is the best way to identify long-term superior growth prospects. This understanding begins with identifying those companies with the right ownership structure and incumbent management.
As of 31 January 2017 the company had total assets of GBP 654 million and had returned 17.8% p.a over the last 5 years versus 12.5% p.a. for its benchmark (FTSE World Europe ex UK) in local currency. A recent fund data sheet can be found here.
* The Manager also regards large scale investment companies, such as Berkshire Hathaway INc., as IEMs, and has the ability to buy a limited number of international stocks directly. These stocks have large capitalisations (greater than USD25billion) and will typically be held by one or more of our IEMs.
Salt Long Short Fund
Salt Funds Management is an independent, boutique fund management firm based in Auckland. The founding Principals of Salt, Paul Harrison and Matthew Goodson, collectively have over 40 years of highly successful investment experience in the New Zealand and Australian equity markets. Salt’s Head of Research, David Oxley, has extensive research experience gained from working in international and NZ equity markets over the last 20 years.
The Salt Long Short fund aims to deliver positive absolute returns in all market environments. In addition to holding or being "long" New Zealand and Australian securities, the Fund may short sell securities, hold cash, lever its assets, and utilise active currency strategies to generate returns.
Salt Funds Management was awarded fund manager of the year at the 2016 Institute of Finance Professionals (INFINZ) awards.
The Salt Long Short Fund was started in July 2014. As of July 2017 the Fund had over NZD $250 million in funds under management and an annualised return since inception of 14.11% per annum.
A recent fund fact sheet can be found here.