Aubrey Global Conviction Strategy
Total Net Assets
The Aubrey Global Conviction Strategy invests in growth stocks worldwide in a concentrated and index agnostic fashion, with the aim of achieving capital appreciation.
As the name implies, it often takes substantial positions in regions and sectors which the managers consider attractive, with the result that the portfolio disposition and performance is generally very different from the MSCI All Countries World Index.
Although unconstrained, the Strategy tends to be mid-cap biased, and expects its companies to be producing earnings growth of at least 15% over a forecast two year time horizon, have a 15% forecast return on equity, as well as being highly cash generative, with a cash flow return on assets of at least 15%. In addition to these quantitative requirements the managers emphasise management quality and track record, franchise strength, and competitive advantage. While many of the stocks in the portfolio pay dividends, it is not a priority in the stock selection process.
With such demanding growth requirements, the portfolio tends towards the higher growth regions of the world, and is generally overweight Asian markets, where excellent demographics and strong economies create an exciting backdrop. In developed markets, particularly the USA, the emphasis has tended towards the Technology, Biotechnology, and Consumer Services sectors. As a consequence, the portfolio is usually underweight in Europe and Japan.
The Strategy aims to achieve long term capital growth over a five year rolling period by investing in attractive markets and sectors on a worldwide basis. The investment policy is to invest in shares, warrants, bonds, money market instruments, cash and deposits, directly or indirectly through collective investment schemes, that can best take advantage of economic opportunities worldwide. As a result, the Strategy may not always have exposure to all asset types. Derivative and forward transactions may be used by the Strategy for Efficient Portfolio Management.
Years at Aubrey
Andrew is Founder, Director and CIO at Aubrey, as well as being Lead Investment Manager of the GEM and Global Equity strategies.
A graduate of Cambridge University, he began his career at Cazenove & Co then joined James Capel in 1987 and was transferred to James Capel (Far East) in Hong Kong in 1991. He continued in his role as an Asian specialist working with UBS Warburg from 1992-1998 in Hong Kong.
Andrew joined Stewart Ivory in 1998 and in 1999 he established the Global Opportunities Fund, now the First State Global Opportunities Fund, which remained his signature fund throughout his tenure at First State Investments. Since inception (August 1999) through June 2006 the fund rose 112.2% compared to a rise of 3.8% in the MSCI World Index. The Fund was top quartile over 1,2,3,4,5 years and since inception.
Years at Aubrey
John, who joined Aubrey in early 2012, is a Director and Fund Manager covering global markets. He is a graduate of the University of Strathclyde, with a BA in Economics and, additionally, is a member of the CFA Institute.
John has over 30 years’ investment industry experience across global equity markets. He joined Glasgow-based FS Assurance in 1988, and managed equity portfolios in the UK retail and pension fund market. He then moved to First State Investments in 2000 to manage retail and segregated European client portfolios. In 2004, he moved to Alliance Trust PLC and was a member of the Global Equity Team and subsequently responsible for the Global Emerging Markets portfolio.