Columbia Threadneedle Investments, a leading global asset management group, announces that the Threadneedle (Lux) Global Focus (the ‘Fund’) has reached the milestone of eight years since David Dudding became its portfolio manager in April 2013. In that period, the Fund generated a total return of 193.86% (after fees), compared to 146.25% for the MSCI ACWI index. The active “best ideas” global equity fund invests in 30 to 50 companies, which David Dudding and his team believe to have enduring competitive advantages and the ability to generate strong and sustainable returns
David Dudding, portfolio manager, Threadneedle (Lux) Global Focus, said: “Underpinning the Threadneedle (Lux) Global Focus is a belief that well managed companies can sustain high returns for longer periods than the market assumes. They typically possess enduring competitive advantages that can keep competitors at bay for an extended period and allow them to deliver stable growth and a predictable cash flow. The benefit of a global approach is that if we think about a particular industry, we are not limited to own the leading business in a particular region - we can own the leading business in the world. Our goal is to build a concentrated portfolio of high-quality companies and invest for the long term.”
Michaela Collet Jackson, Head of Distribution EMEA at Columbia Threadneedle Investments, said: “As a firm we believe in the value of active management, and this Fund is a prime example of how a well thought-out, active investment process can deliver outperformance for our clients. David successfully navigated his way through a number of turbulent periods over the last eight years, including market volatility at the end of 2018 and more recently the COVID-19 global pandemic. We are really pleased that David has been able to deliver such a strong track record and deliver consistent investment returns for our clients.”
Stock examples held in the Fund:
Mastercard: This is the classic example of the type of company that David likes and has held since launch of the strategy in 2013. It’s a capital light business that operates in an oligopolistic industry with high barriers to entry. Consequently, it has enjoyed consistently high returns on capital and healthy cash flow generation.
AIA: This is a Hong Kong based life insurance company. With its longstanding presence in an increasingly consolidated market, AIA has offered resilient growth backed by favourable structural trends. While David doesn’t hold traditional financial companies, he doesn’t rule anything out. With AIA, he was convinced that its competitive advantage was sustainable and supported a predictable cash flow over time.
David Dudding continues: “We assess individual companies on their own merits, looking for those that can compound growth consistently over a multi-year period. This naturally gives us exposure to certain secular trends – ecommerce, cloud computing, health care innovation etc – many of which proved successful in 2020. We benefit from a very deep research capability and a strong collaborative culture at Columbia Threadneedle. We have analysts around the world, many of them portfolio managers in their own right, who can all potentially source ideas for this fund. This give us direct access to local market knowledge, which is incredibly important. However, with that level of resource it is important to have a disciplined philosophy and process. This is a high conviction global portfolio, so we want to understand that we are investing in truly the best company in its industry on a global basis.”
Press release by Columbia Threadneedle Investments
Publié le 26 mai 2021