Campaign

Threadneedle Global Focus Fund

Quality leads to consistent growth

The Threadneedle Global Focus Fund is a best ideas portfolio of the world’s high-quality companies. Following the approach of our successful SICAV strategy, this fund seeks out quality companies with sustainable competitive advantage that are able to continually grow their earnings above the market. Our extensive research network of equity investment professionals across geographies and sectors equips Fund Manager, David Dudding, with a uniquely broad and diversified investment opportunity set, crucial at a time when growth is scarce.

Overview

More opportunity - Global research capabilities drive differentiated stock holdings

Although a focused portfolio of typically 30-50 holdings, the fund has a more balanced and diversified opportunity set and no reliance on a particular sector or geography to drive performance. For example, exposure to faster growing emerging market economies and quality companies within areas such as financials.

More quality - A clear and differentiated quality approach focusing on competitive advantage

The team looks for multiple sources of competitive advantage in a businesses that provide a wide economic moat, such as strong brand, low-cost production, network effect, efficient scale meaning only a few large players can operate, and switching costs that make changing a service or product expensive. The teams believes these competitive advantages give businesses a strong position to withstand disruptive innovation.

More growth - Invests in companies sustainably growing faster than the market

The fund has a growth tilt with no style drift, which the team believes is especially important in a structurally lower-growth environment.

Key facts

Target benchmark
MSCI AC World

 

Comparator Benchmark
UK IA – Global

 

Fund Launch
April 2018

 

Typical number of holdings
30-50

 

Fund manager
David Dudding

Alpha Manager 2020 David Dudding

Philosophy & approach

The team’s style is based on the search for high-quality stocks which have multi-source competitive advantages alongside robust business models, and therefore strong and sustainable long-term growth potential. The ability of quality companies to sustain high returns on capital and above-average growth is often underestimated, meaning that potential long-term winners trade at a discount to their intrinsic value.

What we mean by quality
  • Competitive advantage manifests itself in a company’s ability to generate high returns on capital
  • The market tends to assume that high returns mean-revert, causing quality companies to be undervalued with growth potential
  • Identifying companies with a sustainable competitive advantage exploits this inefficiency
How we identify sustainable competitive advantage
Competitive advantage framework: how to identify strong economic moats
Circle diagram
Circle diagram

1 As at 30 September 2020

The team thoroughly analyse both company fundamentals and industry prospects, using a competitive advantage framework to identify economic moats, and apply Porter’s Five Forces to assess the sustainability of those competitive advantages.

Working with our equity research teams across the globe they then build a high conviction, best ideas portfolio of quality companies with strong growth potential.

With a ‘go anywhere’ approach, stock selection drives sector and regional weightings, and we believe our focus on businesses with strong fundamentals drives outperformance across a range of market conditions, with your clients success our priority.

Insights

5 March 2021

Mark King

Head of Investment Content

Market Monitor - 5 March 2021

Global stock markets have largely bounced back from the losses sustained late last week (ending 26 February), but investors remain concerned about the possibility of higher levels of inflation and rising interest rates in the months ahead.
Read time - 2 min
19 February 2021

Jonathan Crown

Portfolio Manager

Dividend outlook: the capital return mix is key in 2021

After a tough year for dividends in 2020, the outlook for 2021 is positive. Many of the sectors that were most impacted in 2020, such as autos, should see a good rebound in dividends
Read time - 5 min
19 February 2021

Pauline Grange

Portfolio Manager, Global Equities

Global Sustainable Outcomes, and how Covid-19 could change the world for ever

We talk to portfolio manager Pauline Grange about global equities and investing in companies which aim to address the world's biggest environmental and social challenges.
Read time - 2 min

Objective

The Fund aims to achieve capital growth over the long term. It looks to outperform the MSCI ACWI Index over rolling 3-year periods, after the deduction of charges. The Fund is actively managed, and invests at least 75% of its assets in a concentrated portfolio of shares of companies worldwide. The Fund selects companies in which the fund manager has a high conviction that the current share price does not reflect the prospects for that business. These companies may be chosen from any economic sector or geographic region, with significant sector and share weightings taken at the fund manager’s discretion. There is no restriction on company size, however, investment tends to focus on larger companies, such as those included in the MSCI ACWI Index. The MSCI ACWI Index is regarded as providing an appropriate representation of the share performance of large and mediumsized companies worldwide, currently with more than 2,700 companies included. It provides a suitable target benchmark against which Fund performance will be measured and evaluated over time.

The Fund typically invests in fewer than 50 companies, which may include shares of some companies not within the Index. The Fund may invest in other securities (including fixed interest securities, convertible securities, and warrants) and collective investment schemes (including funds managed by Columbia Threadneedle companies), when deemed appropriate. The Fund may also hold money market instruments, deposits, cash and near cash. The Fund is not permitted to invest in derivatives for investment purposes, but derivatives may be used with the aim of reducing risk or managing the Fund more efficiently.

Other information: Many funds sold in the UK are grouped into sectors by the Investment Association (the trade body that represents UK investment managers), to facilitate comparison between funds with broadly similar characteristics (peer groups). This Fund is currently included in the IA Global sector. Performance data on funds within this sector may be used when evaluating the performance of this Fund.

Fund Manager

David Dudding
Portfolio Manager, Global Equities

Contact Us

Contact our Sales Support

Telephone

0207 464 5855*
 
*Please note calls are recorded

Email

Contact our regional sales team

✅ Common/Icons/15px/Avatar

Find your local sales representative


Find out more

Disclaimer

Past performance is not a guide to future performance. Your capital is at Risk. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested.

Threadneedle Global Focus Fund: Threadneedle Specialist Investment Funds ICVC (“TSIF”) is an open-ended investment company structured as an umbrella company, incorporated in England and Wales, authorised and regulated in the UK by the Financial Conduct Authority (FCA) as a UCITS scheme. The Threadneedle Global Focus Fund is registered for public offer in the UK. Shares in the Fund may not be offered to the public in any other country and this document must not be issued, circulated or distributed other than in circumstances which do not constitute an offer to the public and are in accordance with applicable local legislation. Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports, which can be obtained free of charge on request, and the applicable terms & conditions. Please refer to the ‘Risk Factors’ section of the Prospectus for all risks applicable to investing in any fund and specifically this Fund. The above documents are available in English, French, German, Portuguese, Italian, Spanish and Dutch (no Dutch Prospectus) and free of charge on request from Columbia Threadneedle Investments, Client Services department PO Box 10033, Chelmsford, Essex CM99 2AL.

Issued by Threadneedle Investment Services Limited. Registered in England and Wales, Registered No. 3701768, Cannon Place, 78 Cannon Street London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority.

Threadneedle (Lux) Global Focus Fund: Threadneedle (Lux) is an investment company with variable capital (Société d’investissement à capital variable, or “SICAV”) formed under the laws of the Grand Duchy of Luxembourg. The SICAV issues, redeems and exchanges shares of different classes. The management company of the SICAV is Threadneedle Management Luxembourg S.A, which is advised by Threadneedle Asset Management Ltd. and/or selected sub-advisors.

Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports, which can be obtained free of charge on request, and the applicable terms & conditions. Please refer to the ‘Risk Factors’ section of the Prospectus for all risks applicable to investing in any fund and specifically this Fund. The above documents and the instrument of incorporation are available on request from our representative and Paying Agent in Switzerland, RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich branch, Badenerstrasse 567, PO Box 1292, 8048 Zurich.
Threadneedle Management Luxembourg S.A. Registered with the Registre de Commerce et des Societes (Luxembourg), Registered No. B 110242 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg. In the UK issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority.
The fund characteristics described above are internal guidelines (rather than limits and controls). They do not form part of the fund’s objective and policy and are subject to change without notice in the future. The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed.
Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.