Fund managers outline thematic approach

Valletta Fund Management recently held an information meeting for potential investors to brief them on the aims of the Vilhena Global Themed Fund.

Fund managers Peter Rutter and Will Kenny, explained how the fund identifies and invests in themes and companies in growing sectors which are influenced by rising social needs through a disciplined investment process.

While the financial markets are experiencing an environment of political and economic uncertainty in Europe, three related themes remain persistent in the global economy.

Mr Rutter and Mr Kenny explained: “Most economic activity will continue, notwithstanding the current uncertain scenario. The world economy still has significant potential to grow and incentive to continue the consumption and provision of goods and services. And there is considerable growth potential globally, resulting in various corporates seeking opportunities to innovate and compete.”

The investment approach adopted by JO Hambro Investment Management Limited, part of the Credit Suisse Group and sub-investment manager of the Vilhena Global Themed Fund, is to manage a portfolio of 35 to 50 stocks with particular focus on geographic dispersion and sector allocation.

The sub-investment manager tends to favour large multi-national companies which have lagged the small and medium companies during market rallies. It is their view that large companies offer better value in what remains a difficult economic environment. The use of a robust investment process framework enables the analysts and fund managers to better understand companies, identify potential changes and value market expectations. Such process also seeks to identify stocks with a high absolute return potential and a margin of safety.

Launched in February 2001, the Vilhena Global Themed Fund, which aims to achieve long-term growth by investing in equity and equity-related securities throughout the world, has grown to over $7.5 million in net assets (as at June 28) and is accessible in both US dollar and euro class of shares from a minimum lump sum subscription of $2,500 or €2,000 or through a monthly investment plan from $50 or €50 per month.

Some of the current themes in the fund’s portfolio include mobile communication technology, oil and gas reserves, emerging markets and world leading brands like American Express, McDonald’s and Adidas.