Global equity fund focused on finding high quality cash compounders that can produce attractive capital returns for investors through time. Strong bias towards market leading companies with a large element of recurring revenues, and strong competitive positions. These businesses tend to be asset-light and able to generate growing free cashflows, that can be reinvested to help compound returns for shareholders in the long- term.
"The Evenlode Global Opportunities Fund is a portfolio of highly cash-generative companies, that can compound their cash-flows consistently over time - producing attractive returns for investors."
James KnoedlerPortfolio Manager
Aims to deliver capital growth from a portfolio of global equities
Focus on companies with high returns on capital, a strong economic moat and pricing power
Disciplined long-term approach, supported by a collaborative investment team shared across all the Evenlode strategies
Chris joined Evenlode in 2015 as an Investment Analyst. In 2017 he became the co-manager on Evenlode's Global Equity Income strategy and in 2020 fund manager on the Global Equity Growth strategy. Previously he worked at the Oxford University Press as a software engineer and completed all his CFA exams whilst working there.
CFA
9 years
9 years
James joined Evenlode in April 2020 as an Investment Analyst and Fund Manager, having previously worked as an equities analyst at Independent Franchise Partners (IFP) from 2015 to 2020. Prior to IFP, he worked as an investment analyst at Arisaig Partners and Newlands Investment Management.
MiF, London Business School
4 years
18 years
In June, the Evenlode Global Opportunities fund posted total returns marginally behind its comparator benchmark, the MSCI World Index. As has been flagged in many other publications, this remains an incredibly narrow market with performance dominated by a few anointed winners. The ‘Magnificent Seven’[1]have accounted for 48% of growth of the MSCI World Index this year. Similarly, the percentage of members of the S&P 500 Index outperforming the overall index is at 25%, the lowest proportion for the past half century. We believe this narrowness of performance is unlikely to persist over the long run. On inspection, earnings growth across companies is broader than share price movements would suggest, and we remain deeply convinced that ultimately share prices follow earnings growth not vice versa.
The fund’s low relative exposure to the Technology sector (as defined by GICs) was a significant detractor to the fund’s relative performance against its benchmark in the past month. The sector outperformed, posting close to double-digit total returns driven by familiar themes; the rise of Artificial Intelligence (AI) and the ongoing transition to cloud. The seven greatest contributors to fund performance in June were Microsoft, Accenture, Alphabet, Amazon, RELX, Verisk, and Wolters Kluwer. These companies account for approximately a third of the portfolio and either directly offer cloud and AI services or can integrate these technologies into client offerings. However, only the first two of these are included in the Technology sector.
The weakest absolute contributor (by sector) for the portfolio was the Consumer Staples sector, as macro-economic concerns over consumer spending persisted. The management of L’Oréal, the French beauty company, flagged weaker guidance on China, with a delay to the expected consumer rebound, and a slowdown in the US mass make-up market. These headwinds need to be put in context of continued robust beauty market growth and economics. We expect L’Oréal to continue its world-leading investment in marketing and innovation, and consequently to continue to capture market share over the quarters and years to come.
We now enter July, a month that will feature both elections in Europe and the beginning of the second quarter results season, both of which could influence volatility. Our investment philosophy and process remain unchanged, with a focus on companies that can compound returns over the long-term.
[1]Alphabet (Google), Amazon, Apple, Meta Platforms (Facebook), Microsoft, NVIDIA, and Tesla.
1Mastercard | 6.6 |
2Alphabet | 6.5 |
3Microsoft | 5.4 |
4RELX | 5.2 |
5Wolters Kluwer | 4.9 |
6Experian | 4.4 |
7Verisk Analytics | 3.7 |
8Medtronic | 3.6 |
9Amazon | 3.5 |
10Diageo | 3.4 |
11Amadeus | 3.3 |
12Heineken | 3.2 |
13L'Oréal | 3.2 |
14Accenture | 3.0 |
15Nestlé | 3.0 |
16Intercontinental Exchange | 2.9 |
17Broadridge Financial | 2.9 |
18Johnson & Johnson | 2.7 |
19Beiersdorf | 2.7 |
20London Stock Exchange Group | 2.6 |
Industrials | 24.3 | |
Financials | 22.2 | |
Consumer Staples | 17.1 | |
Consumer Discretionary | 10.5 | |
Communication Services | 10.2 | |
Information Technology | 8.4 | |
Health Care | 6.4 | |
Cash | 0.9 |
North America | 52.7 | |
Europe | 26.1 | |
United Kingdom | 18.8 | |
Asia-Pacific | 1.5 | |
Cash | 0.9 |
Comparator Benchmark | MSCI World |
Morningstar category | Global Large-Cap Growth Equity |
Launch date | 10 May 2021 |
Fund type | Irish Domiciled UCITS |
Base currency | USD |
Dividend frequency | Annually |
Country of registration | Denmark, Finland, Germany, Ireland, Luxembourg, Norway, Sweden, Switzerland |
SFDR disclosure | Article 8 |
The investment objective of Evenlode Global Opportunities Fund is to provide capital growth over rolling periods of 5 years.
Dealing line | +353 (0)1 6750 300 |
Administrator email | Contact |
Dealing frequency | Daily |
Price frequency | Daily |
Settlement terms | T+3 |
Dealing cut-off time | 9:30am (Irish Time) |
Valuation point | 12 noon, Daily (Irish Time) |
Client services line | +353 (0) 1 533 7810 |
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