FF&P launches Global Select Equities fund
Fleming Family & Partners has launched Global Select Equities, a fund designed to overcome the geographical and sectoral constraints seen in traditional, large capitalisation, actively-managed equity strategies.
The fund’s constituent stocks are selected from among the most liquid 10% of listed stocks globally. This universe is narrowed down further through FF&P’s screening process which focuses on stocks with a high and sustainable return on equity, strong free cash flow generation and the capacity to perform across the market cycle.
From an initial universe of approximately 16,000, only 80 to 150 stocks will typically meet all of the required criteria. Through the use of qualitative analysis, a portfolio of the best 40-60 ideas is then selected, the firm said.
The fund is accessible to both existing FF&P clients and other investors through a UCITS fund. For current clients, there is a performance fee of 15% but no management charge. Other investors will pay a base fee of 1% and the same performance fee as existing FF&P clients.
According to Arthur Grigoryants, head of investments at FF&P, the new fund was developed in response to the difficulty and expense of creating global large capitalisation exposure through portfolio manager selection.
“We have been looking at this for about four years and we concluded that success in large capitalisation investment is highly dependent on the ability to navigate across geographies and sectors. Individual managers who focus on a particular region or sector must remain within that remit, even when they see good opportunities elsewhere, while it’s also harder for large capitalisation managers to perform as large capitalisation markets tend to be more efficient. We developed Global Select Equities to find the best opportunities in large capitalisation equities in markets across the world,” he said.