Recognising that different approaches to investing perform differently in any given phase of an economic and market cycle, the MISM fund blends high conviction, style specific approaches which help to stack the odds in favour of a more robust relative performance profile over the market cycle.
The high-quality growth exposure is provided through Nick Train, co-founder of Lindsell Train. Train constructs a concentrated portfolio of “exceptional” companies, with a focus on those businesses with truly sustainable business models and/or established powerful brands. Train has an exceptional track record in delivering relative returns versus the index. Also included in the growth ‘silo’, however further down the market cap scale, is Richard Watts at Old Mutual. Richard runs a concentrated portfolio of stocks investing for growth in mid-sized companies. The philosophy is based on the view that the comparatively less well-researched nature of mid cap stocks gives rise to persistent pricing inefficiencies which can be exploited through rigorous proprietary research. Focusing on investments that are stylistically opposed to both Nick Train and Richard Watts is Alastair Mundy at Investec. Mundy and his team essentially aim to purchase stocks when sentiment towards them is poor and valuations are cheap and sell them as fundamental profit improvement and/or re-evaluation of their long-term prospects take place. Mundy believes it is very difficult to ‘out-analyse’ others in determining future profitability and instead focuses on different types of arbitrage opportunities that allow him to take contrarian positions. Focusing on small cap investing within the fund is Gervais Williams from Miton. Gervais draws upon decades of experience investing in smaller companies and adopts a more valuation driven approach to his growth counterparts in the sector. This value approach we think blends well with the more mid cap focused, growth approach of Richard Watts. Providing the core exposure and helping to deliver consistent stable returns with less stylistic biases is the JPM UK Core strategy run by James Illsley and his team. The process draws upon the approach by the Behavioural Finance Team at JPM asset management, effectively combining three styles, Value, Quality and Momentum in a single strategy to outperform on a more consistent basis and through different market cycles. The JPM strategy is not designed to outperform significantly, however has a proven track record of delivering incremental alpha at an attractive cost.
Past performance is not a guide to future performance.
The value of investments can fall and you may get back less than you invested.