Global Opportunities Fund

A Better Way to Access Emerging Markets

Fund overview

Thornbridge Global Opportunities Fund is a thematic fund with reduced stock specific risk. The managers believe the agent of change in the global economy is the 6bn population living outside the west and they seek businesses that engage with it, wherever they are. They believe this is a better way to access developing markets.

The investment approach is simple, transparent and unconstrained. The fund has a proven long term track record with 10.96% compound annualised growth since 2004.

The investment objective is to seek capital & income growth from investments identified across global equity and/or bond markets. The managers may also choose to hold government securities, collective investment schemes and cash & money market instruments as appropriate in achieving the overall objective of the fund. Please note that the themes currently being pursued by the managers lead it to invest in a number of higher risk emerging economies. The investment process is focussed on identifying the sectors that sit within chosen themes and constructing a diversified portfolio within those sectors.

ISIN Currency Price/NAV Change Price date
Acc GB00B5TP8W88 GBP 438.66 0.5643%   19 Jan 2018
Inc GB00B5SZCM77 GBP 384.81 0.5643%   19 Jan 2018

Fund manager comment - December

The fund rose 1.56% in December to close a good quartile 1 year in which we returned 22.3%. Original investors have now seen their stake rise in value fourfold for a compound annual growth rate of 10.96%.

2018 should be a reasonable year given building momentum in the global economy..... The catch is that we all know this and so markets are not cheap. The key will be to engage with compounding scenarios, rather than be preoccupied with absolute levels. We believe that some of those stalwarts of the modest growth but recurring demand consumer markets may be back in demand this year having been sold off for more exciting pastures in 2017. Even if predominantly as bond proxies.

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The current environment seems to be one in which demand is growing worldwide, but not at a rate that is outstripping supply meaning that inflationary pressures, and interest rates, may be relatively subdued. As markets increase the price they will pay for a dollar of earnings so volatility may also increase. In the old days that volatility would be hedged against with Bonds. But that asset class is a low yielding one after three decades of falling rates... below dividend yields in some markets. Recurring demand for toothpaste, soap and other stuff used in your house every day, and the modestly rising dividend pay-outs on the back of it, might come to be seen as a bond substitute.

The Global Opportunities Fund represents a stake in the consequences of rising incomes outside G7. The managers believe the investment universe has for some years been split into two economies - 'The Supplied' consisting of 1bn western consumers and 'The Suppliers' consisting of 6bn worker exporters. Against this backdrop investors have allocated assets by geography. We now live in a single global market place of 7bn consumers requiring assets to be allocated to those companies catering to the collective needs and wants within it.

The managers believe that markets are broadly efficient and asset allocation therefore delivers greater reward than individual stock selection. The Investment process is focussed on identifying sectors that sit within chosen themes by using screens for market signals and sector patterns.

Conventional bottom up research is then applied to the resulting shortlists with the managers looking for companies exhibiting the highest quality earnings, dividends, margins and sales CAGRs within the group. They favour businesses that enjoy ‘little and often’ recurring demand, are established with strong market positions and can demonstrate a degree of pricing power or economic moat.

The managers believe in the concept of compounding - adding to winners and reducing losers. In this way success is reinforced and destruction minimalized. Those stocks that don’t grow, go.

Inception
January 2004, run by Thornbridge IM from August 2015
Assets*
£69.9 M
Investment Objective
Capital Growth
Investment Policy
Unconstrained theme based fund with emerging market emphasis
Type
OEIC, UCITS long only fund, daily dealing, single share price
Illustrative Benchmark
MSCI World TR GBP
Sector
IA Global
Ongoing Charges
1.05%
Number of Holdings*
227
Dividend Yield*
1.60%
Sedol Number
Acc: B5TP8W8
ISIN
Acc: GB00B5TP8W88
Bloomberg Code
JMFPOLA
Authorised Corporate Director
Maitland Institutional Services Ltd – Dealing Line: 0345 305 4216
Contact Details
James Bedford, Thornbridge Investment Management
Direct: 020 8004 3275, Mobile: 07775 817 127
james.bedford@thornbridge.com
Inception
January 2004, run by Thornbridge IM from August 2015
Assets*
£69.9 M
Investment Objective
Capital Growth
Investment Policy
Unconstrained theme based fund with emerging market emphasis
Type
OEIC, UCITS long only fund, daily dealing, single share price
Illustrative Benchmark
MSCI World TR GBP
Sector
IA Global
Ongoing Charges
1.05%
Number of Holdings*
227
Dividend Yield*
1.60%
Sedol Number
Inc: B5SZCM7
ISIN
Inc: GB00B5SZCM77
Bloomberg Code
JMFPOLA
Authorised Corporate Director
Maitland Institutional Services Ltd – Dealing Line: 0345 305 4216
Contact Details
James Bedford, Thornbridge Investment Management
Direct: 020 8004 3275, Mobile: 07775 817 127
james.bedford@thornbridge.com

* As at 29 Dec 2017

Top 10 Holdings

Keywords Studios Plc1.12%
Partners Group Holdings1.11%
Visa Inc1.02%
Eramet1.01%
Croda International Plc0.99%
Fraport0.94%
Wendel0.92%
Aegis Logistics0.92%
Estee Lauder0.91%
American Tower Corp0.91%

Sector breakdown

Strategic Assets22.45%
Capital Equipment21.60%
Consumer Facing20.10%
Healthcare10.86%
Hard & Soft Commodities10.86%
Tech10.30%
Financial3.83%

Performance over past 10 years

Cumulative performance to December 2017

3 Mnth 6 Mnth YTD 1 Year 3 Year 5 Year 10 Year
Global Opportunities Fund 5.61% 8.12% 22.26% 22.26% 48.84% 73.27% 69.15%
MSCI AC World TR GBP 4.97% 7.01% 13.82% 13.82% 52.94% 106.05% 144.76%
MSCI EM TR GBP 6.62% 11.52% 25.81% 25.81% 51.30% 51.36% 79.80%

Discrete performance to the last quarter end

Managers

Anthony Eaton

Anthony Eaton Anthony has been lead manager on the Global Opportunities Fund since 2005. As well as running the fund, Anthony continues to be a senior investment manager at JM Finn. Anthony graduated from Bangor University with a BA in Economics and is a member of the CISI (Chartered Institute for Securities & Investment). Prior to joining JM Finn in 2001, Anthony was with Greig Middleton which he joined in 1990.

Isabella Galliers-Pratt

Isabella Galliers-Pratt Isabella has been working with Anthony on the Global Opportunities Fund since November 2010. After graduating from Bristol University, Isabella did an internship with UBS before joining Key Asset Management in 2001 (part of SEB, Swedish Bank) as an analyst. She then worked for Hargreave Hale focusing on the VCTs and assisting with the management of an asset allocation model before joining JM Finn in January 2010. Isabella holds the Investment Management Certificate (IMC) and Investment Advice Diploma (IAD).

How to invest and further information

To deal in the units of Thornbridge Global Opportunities Fund please call Maitland Institutional Services Ltd on +44 (0)345 305 4216.

Further information and forms are available from Maitland Institutional Services Ltd at www.maitlandgroup.com/fund-info/mi-thornbridge-global-opportunities-fund/ or call +44 (0)345 305 4216.

For further enquiries on the Thornbridge Global Opportunities Fund please contact James Bedford at Thornbridge Investment Management on +44 (0)20 8004 3275 / james.bedford@thornbridge.com