We have added Stonehage Fleming Global Best Ideas Equity to the service as a Recommended fund.

Fund snapshot

A large-cap, global equity fund that is concentrated in nature and is invested in companies considered to be best-of-breed.  A “Global Best Idea” is typically a firm that is a leader in its field and has sustainable growth and positive free cash flow attributes.  Within its sector, the fund features within our ‘Larger-Cap, Growth’ category.

Fund description – key points

• The fund is managed by Head of Equity Management at Stonehage Fleming Equity Management, Gerrit Smit, who is supported by a team of experienced analysts.  Stonehage Fleming Group is one of the largest pan-European multi-family office businesses.
• The team believes that investors are rewarded for owning quality businesses for the long term and buying them at reasonable valuations.  Their approach to investing is akin to long-term business ownership.
• To feature in the portfolio, such best-in-class businesses should have a strategic competitive edge, be able to generate sustainable growth in free cash flow and be attractively priced.
• Mr Smit is a seasoned equity practitioner who has been investing according to the same process for many years.

Characteristics and utility

• The fund is concentrated and invested primarily in mega and large-cap companies with good liquidity profiles.  The style is best described as “growth at the right price”.
• The team is benchmark-agnostic, and the fund’s mandate is broad.  As such, the fund displays a performance profile that is often distinctly different from recognised global equity indices.  It has a record of performing relatively well when the broader market has been negative or volatile.
• The focus upon high quality, organic growth companies, which are leaders in their fields, means the fund will typically struggle in value-orientated markets that favour cyclical and recovery stocks.
• Sector-wise, energy and utility companies tend to be avoided, while consumer, technology and healthcare companies are favoured.
• The fund is suited to investors seeking a focused, unconstrained approach to investing in best-in-class, sustainable growth businesses.

To view our full factsheet, please visit the fund page.