Effectively investors are getting a developed market global fund with a bias to Europe and the UK. It is a high conviction portfolio with the top ten stocks being the real drivers of performance.
For new investors choosing the right sector or country can be daunting. Often they are drawn to the best performers, and those being advertised. This strategy can work but the reverse is also true with investors being disappointed because they haven’t fully understood the strategy.
A global fund can give investors broader diversification but even within that care needs to be taken that the fund doesn’t favour one country. The SVM Global Equity Fund has an unusually high weighting to the UK (24.95%) and also favours Europe (23.88%) and the US (37.30%). And therefore is more of a developed market fund.
The fund is not large (circa £25 million of assets) and currently holds around 40 stocks with the top ten holdings taking around 37% of the fund. The current manager took over the fund at the end of 2010 and in 2012, 2013 and 2014 he has outperformed the benchmark.
It has a large cap bias but is at the lower end of the large cap scale with the manager’s experience being in small to mid-cap.
The update provides views from the manager on the economic outlook and how the fund is positioned as well an indication on how they invest.