WS Keyridge European Fund

Essential features of the Fund

• A focused portfolio of 75-100 holdings, predominately in large capitalisation companies. The Fund may also invest in small and midcap companies when opportunities arise.

• No specific targets in relation to market sectors.

• Invests at least 80% of its assets in the shares of companies that are incorporated or domiciled in Europe (excluding United Kingdom), including real estate investment trusts (REITs).

• Can invest across different industries and market capitalisations without limitation.

• May invest up to 20% of its assets by value in debt securities (such as corporate bonds, government and public securities), money market instruments, deposits and cash.

• Investments in collective investment schemes is limited to 10% of the assets by value

  • The Fund may use derivatives for the purpose of efficient portfolio management.

For further details on the objective and investment policy, visit the Literature section to view fund KIIDs and Prospectus.

How the Fund is managed

The Fund uses a blend of top-down macro views and bottom-up stock selection to identify investment ideas in which have the highest conviction, it is flexible, pragmatic and mindful of prevailing macroeconomic and market conditions, for example; employment, inflation and gross domestic product.

• Fundamental analysis

  Specific holdings are determined through research that is undertaken by the Keyridge’s equities team, including company visits and conferences. The choice spans a variety of industries, services and geographical locations, allowing the manager to gain targeted exposure.

• Sector selection

  Bottom-up stock selection is a major factor in determining the shape of the overall Fund portfolio. However, sector allocations are also important in order to ensure balance and diversification. Typically, macro and market views are considered in order to balance the portfolio across factors such as growth, cyclicality and defensiveness. Additionally, the desired exposure to trends such as in bond yields and commodity prices are key considerations. This approach to portfolio construction allows us to deliver a diversified source of return from both a capital and income perspective.

• Stock selection

  Typically across companies of all sizes, from large well-knowns to smaller scale operations. The stock selection process itself takes into account several factors. These include the company’s market position, quality of its brand and underlying assets, how it fits in with current market and economic trends, and the specific drivers behind earnings and dividend growth. The managers will also conduct a thorough analysis of a company’s valuation, being sure to understand its earnings forecasts and any changes to a company’s strategy or management team.

Reasons to recommend

• Diverse opportunities

  Europe boasts a wide range of investment opportunities across compelling sectors where its companies are world leaders, such as technology, engineering and luxury goods.

• Unconstrained approach

  To make the most of Europe’s potential, it is necessary to be unconstrained and have the freedom to invest anywhere in the region. The Fund may not be appropriate for investors who plan to withdraw their money within five years.