Following The Adviser Centre Monthly Review Meeting on 26^th June 2019, Threadneedle Global Focus has been added as a Recommended fund.

Threadneedle Global Focus is a concentrated, larger-cap global equity fund with distinct quality and growth characteristics.  It is managed by David Dudding, a seasoned quality growth investor who built an impressive track record in European equities before extending his skill set into global equities.  A Luxembourg-based version of the strategy was set up in 2013 and the OEIC version was launched in April 2018, managed according to the same focused approach.

David Dudding is passionate about the opportunities offered by a global palette of stocks, applying his tried-and-tested approach consistently and with conviction.  Philosophically, he believes that companies with sustainable competitive advantages, reflected in high or rising returns on capital and the ability to compound earnings over time, make for superior long-term investments.  He works collegiately with his fellow portfolio managers in the global equity team, as well as drawing upon the knowledge of the regional teams in London and other locations.  In assessing companies and their industries, they use the Porter’s Five Forces framework and engage actively with a company’s management, customers and suppliers to build a holistic understanding of the growth opportunity and to determine the firm’s ability to sustain competitive advantages over the long term.

The portfolio is concentrated, featuring 30-50 holdings, and has few constraints relative to the benchmark.  Furthermore, the portfolio is typically under-represented in certain sectors, such as energy and regulated industries, where sustainable competitive advantages are harder to find. These characteristics mean that the fund’s risk and return profile may differ meaningfully from the index and peers in the IA Global sector.  With this in mind, the fund should appeal to investors who are attracted by the manager’s conviction-led approach to the global opportunity set but who are also comfortable with the risks associated with focused growth investing.

The fund features in the “Larger-Cap, Growth” category in our IA Sector Overview.  Please click here for further details.