RWC Partners is to launch two new long-only European Growth equity UCITS funds before the end of the year.
RWC’s recently appointed European fund manager Graham Clapp will head the European Equity team that will manage both the RWC European Growth fund and the RWC Continental Europe Growth fund
Clapp, pictured left, was previously at Fidelity UK for 22 years where he managed the €25bn Fidelity European Growth Fund before launching his own business, Pensato Capital, in 2008 and latterly joining RWC.
The RWC European Growth Fund will be managed following the strategy employed by the team’s existing Cayman-domiciled fund, although the similar RWC Continental Europe Growth Fund will have a limit on exposure to UK-listed companies, the company said.
The new funds will form part of RWC’s UCITS range which currently accounts for around US$3.5bn of the organisation’s $12bn assets under management.
Clapp’s investment team of seven portfolio managers and analysts joined RWC in September 2017 from Pensato Capital. The senior team members have worked together for over 10 years and employ a core investment process which has delivered consistent outperformance since Clapp began managing assets at Fidelity in 1990.
RWC Partners’ chief executive Dan Mannix said that upon joining RWC Clapp was “extremely keen” to launch a long-only fund for European investors.
“During his time at Fidelity he had a huge following with the Fidelity European Growth Fund producing significant outperformance under Graham’s management and being the largest European equity fund at the time.
“We are seeing increasing interest in the European equity space and believe the asset class currently offers long-term strategic investors a real opportunity. European equities have for many years been priced at a discount to other main stock markets. Many believe that this discount has been justified by greater political and economic uncertainty surrounding continental Europe.”
Mannix added that investors today increasingly believe that the risks priced into European assets are much better understood and therefore see the appeal of the high quality European corporate sector.
Various measures of valuation dispersion, “especially outside of the largest listed stocks”, also indicate that the environment for skilled stock selectors is providing good opportunities at the moment, he said.