We invest in best-of-breed businesses for their quality, strategic competitive edge and value. We believe that a portfolio of businesses each containing these elements will provide us with a favourable return over time.
FUNDAMENTAL PILLARS OF QUALITY: IDENTIFYING GLOBAL BEST-OF-BREED BUSINESSES
"We are what we repeatedly do. Excellence then, is not an act, but a habit."
Will Durant
The specialist equity management division was established in 2009, and the team has over 100 years of combined experience.
The team only invests in best-of-breed companies that can clearly demonstrate quality, strategic competitive edge and value.
The team looks for companies with the following characteristics:
To identify businesses that meet the quality threshold, the team use the above criteria to narrow down the broad investment universe of over 2000 candidates to a core universe of 150 candidates, which are then monitored closely.
In addition to the above criteria, there are a series of key characteristics a company should possess in order to be considered for investment. Characteristics such as an positive margin trend, levels of debt and dividend cover are also central to the team’s analysis.
*All sources as at 31 December 2020
"We believe that - if we have identified a quality business, and we do not pay more than a fair value, then these businesses should provide favourable returns over time. Central to this philosophy is a ‘buy-to-hold and compounding’ mind-set, to be invested in those businesses for the longer term.”
Gerrit Smit, Fund Manager
Gerrit is Head of the Equity Management team, he has overall responsibility for the business unit, along with its Portfolio Management and Equity Research functions.
Gerrit joined the Group in 2008 following over 25 years’ investment experience as Equity Analyst, Chief Investment Strategist and Chief Investment Officer for Sanlam’s International portfolios. He holds a Hons B.Com degree from the University of Stellenbosch and the University of South Africa and a PSM qualification from the Business School of the University of Stellenbosch.
Tom is a Director of Stonehage Fleming Investment Management and responsible for company research within the Equity Management team. Specialising in in-depth, bottom up research, he covers multiple companies across all sectors under the single global quality equity mandate.
Tom joined the Group in 2009 from ZAN Partners where he was a multi-asset Analyst and Trader. Prior to that he worked as an Equity Analyst at Sigma Capital having started his career with PricewaterhouseCoopers’ Performance Improvement Consulting business. Tom is a CFA charterholder and an associate of the Chartered Institute for Securities and Investment.
Mark is a Director within the Stonehage Fleming Group specialising in in-depth, bottom up company research within the Direct Equity Management team.
Prior to joining Stonehage Fleming, Mark spent over 9 years at Investec Asset Management where he was a Global Equity Analyst and Sector Portfolio Manager. Previously, he worked at M&G Investments in both Pan-European and global equity analyst roles. Mark is a CFA Charterholder and graduated from Warwick University with a first class honours degree in economics.
Nicky is responsible for company research within the Equity Management team. Specialising in in-depth, bottom up research, she covers multiple companies across all sectors under the single global quality equity mandate.
Nicky joined the Equity Management Team in 2019 from Bessemer Trust having previously worked at River & Mercantile Asset Management, Neptune and BlackRock/MLIM. She is a CFA charterholder and graduated from Oxford University with first class honours in Physics.
Thomas is a Director within the Equity Management team, providing client-servicing support to Gerrit Smit, Head of the Equity Management team.
Thomas joined the Group in 2011, having previously worked as a Project Manager at Jabulani Rural Health Foundation. Prior to this, he worked as a Consultant at IQuad Group Limited in Cape Town, consulting on various government-initiated investment incentive programmes. Thomas holds a Bachelor of Business Science (Honours) degree from the University of Cape Town and is a CFA charterholder.
Sean is responsible for company research, supporting the Equity Management team.
Sean joined the group in 2018, having previously worked at Quilter Cheviot and Old Mutual Global Investors. Sean is a CFA charterholder, he holds the Investment Management Certificate (IMC), and he is an affiliate member of the Chartered Institute for Securities and Investment. He graduated with a first-class degree in BSc (Honours) Finance and Investment Banking.
Our flagship investment capability is the Stonehage Fleming Global Best Ideas Equity strategy, which was launched in July 2009. The strategy has in excess of GBP2.7bn in assets under management. It is offered through a Dublin based UCITS fund (the Stonehage Fleming Global Best Ideas Equity Fund, launched in August 2013) or on a segregated basis in exceptional cases for portfolios in excess of GBP40m.
Stonehage Fleming Global Best Ideas Equity Fund | |||||||
---|---|---|---|---|---|---|---|
Class | Currency | NAV Price | NAV Price (prev) |
Price Change +/- |
Valuation Date | ISIN | |
a | $ | 254.1036 | 252.7860 | 1.3176 | 16 Apr 21 | IE00BCLYMB94 | |
b | $ | 263.8646 | 262.4929 | 1.3717 | 16 Apr 21 | IE00BCLYMC02 | |
c | £ | 286.0422 | 285.1161 | 0.9261 | 16 Apr 21 | IE00BCLYMD19 | |
d | £ | 289.6671 | 288.7254 | 0.9417 | 16 Apr 21 | IE00BCLYMF33 | |
e | $ | 223.5390 | 222.3754 | 1.1636 | 16 Apr 21 | IE00BDB5NR23 | |
f | £ | 223.1395 | 222.4125 | 0.7270 | 16 Apr 21 | IE00BDB5NS30 | |
g | $ | 213.0473 | 211.9353 | 1.1120 | 16 Apr 21 | IE00BDB5NT47 | |
h | £ | 220.1587 | 219.4384 | 0.7203 | 16 Apr 21 | IE00BDB5NV68 | |
i | € | 179.9654 | 179.1720 | 0.7934 | 16 Apr 21 | IE00BDB5NW75 |
2020 is engraved in the annals of history as the year of COVID-19. Those investors who held tight through the year were rewarded. Those investors who were positioned in quality businesses with a sustainable growth orientation were rewarded even more so during the eventful GVC year.
World equity markets trod water over the third quarter. The MSCI World Index (including Emerging Markets and dividends) held onto the first half performance of +16.2% (US$ terms) over the nine months.
World equity markets continued their positive trajectory during the second quarter. The MSCI World Index (including Emerging Markets and dividends) appreciated by a further +3.6% on top of the high base of +12.2% during the first quarter. This brought the first half performance to +16.2% (all data in US$ terms).
The new year started off with a strong first quarter. The MSCI World Index (including Emerging Markets and dividends) appreciated by +12.2% (in US$ terms). This is the best first quarter return for over twenty years.
“I don’t have opinions about things I know nothing about.” - Prins Philip
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
"Out of difficulties grow miracles." - Jean de la Bruyère
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
"Great things are done by a series of small things brought together." - Vincent van Gogh
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
"It’s what you learn after you know it all that counts" - Earl Weaver
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
"Nothing is more noble, nothing more venerable, than loyalty." - Marcus Tullius Cicero
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
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Storms make the oak grow deeper roots.” - George Herbert
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
“Life is what happens to you while you’re busy making other plans.” - John Lennon
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
"Do the best until you know better. Then when you know better, do better." - Maya Angelou
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
"It is always the simple that produce the marvelous." - Amelia Huddleston Barr
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
"Doing the best at this moment puts you in the best place for the next moment." Oprah Winfrey
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
"The difference between ordinary and extraordinary is that little extra." - Jimmy Johnson
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
“You are lost the instant you know what the result will be.” - Juan Gris
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
“The best qualification of a prophet is to have a good memory.” - George Savile
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
“The noblest pleasure is the joy of understanding.” - Leonardo da Vinci.
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
“The whole is more than the sum of its parts.” – Aristotle
Read Fund Manager Gerrit Smit’s latest Global Equity Perspective
US institutional investor confidence is currently at historic low levels, two standard deviations away from the average.
“One cannot develop an effective philosophy without having been exposed to life’s lessons.” - Howard Marks
Read Fund Manger Gerrit Smit’s latest Global Equity Perspective.
“Well bought is half sold.” - Howard Marks
Read Fund Manger Gerrit Smit’s latest Global Equity Perspective.
“You can’t predict. You can prepare.” - Howard Marks
Read Fund Manger Gerrit Smit’s latest Global Equity Perspective.
“Patience is bitter, but its fruit is sweet.” - Aristotle
Read Fund Manger Gerrit Smit’s latest Global Equity Perspective.
Contrary to earlier hopes, coronavirus is spreading through the world with infections now on all continents.
“Wonder is the beginning of wisdom.” Socrates
Read Fund Manger Gerrit Smit’s latest Global Equity Perspectives
“The aim of the wise is not to secure pleasure, but to avoid pain” Aristotle
Even though industrial production makes up less than a fifth of the US economy, its higher volatility causes disproportional sensitivity in capital markets.
“The more I live, the more I regret how little I know” Claude Monet
We monitor several indices reflecting general capital market conditions. Each one considers the sponsor’s perceptions of the capital market environment, including stresses in the financial system.
“He who can no longer pause to wonder and stand rapt in awe, is as good as dead.” Albert Einstein
Investors start a new calendar year with a theme of global moderation in the economic outlook following the very volatile markets at the close of last year. The big question is whether the market discounts the outlook deteriorating more aggressively than earlier perceptions.
US confidence indices are starting to roll over from elevated levels. It is still too early to confirm a negative trend, but odds seem high to be the case. This has historically started years before a recession, and we can on this basis therefore not yet forecast an imminent recession.
“He who in contented is rich.” Laozi
With the volatile US stock market, it is prudent to continue closely monitoring its economic fundamental outlook as this year closes.
The current economic indicator in the above chart remains stable. The most recent reading of the trusted leading economic index of ten economic indicators has dropped from the previous peak level but is still at an elevated level. The spread between the two series (see the bottom section of the chart) is also at an elevated level. This spread traditionally went negative more than two years before the respective recessions.
“It’s not that I am so smart, I just stay with problems longer.” Albert Einstein
It is our impression that we would need a relatively high probability of an imminent US recession to fear the formation of a bear market in equities and therefore a structural peak in share prices.
“If you can’t explain it simply, you don’t understand it well enough.” Albert Einstein
The weak stock market performance over the past few weeks has brought it close to an official correction level of -10%.
“What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience.” Adam Smith
We continue to believe that the most important fundamental issue for the health of global financial markets is the outlook for the US economy.
GLOBAL MARKETS: The most important issue for the global capital markets remains the health of the US economy.
“Tomorrow belongs to those who can hear it coming.” David Bowie
Somewhat surprisingly the end of July reading for the leading economic indicator ticked up again. Whilst the PMI index dropped a notch, it is still at elevated levels. The combination of these two readings provides continued confidence in the US economy.
“Difficulties strengthen the mind, as labour does the body.” Seneca
US ECONOMY: We keep monitoring US economic indicators to form an opinion of the level of risk for an upcoming recession, and therefore for a potential peak in share prices: US – Conference Board Leading Economic Index & Goldman Sachs Current Economic Activity Indictor vs S&P 500
“He who is brave is free.” Seneca
Most leading US economic indicators are currently at historically elevated levels, with some seemingly in a process of peaking and rolling over. Headlines of ‘this is as good as it gets’ may well be expected.
Investors are reflecting on a combination of potent recent geopolitical events. The G7 summit ended in acrimony, the Singapore summit seems to hold promise of more peace in Asia and immediately afterwards more threats of a trade war between the US and China materialised.
These are confusing circumstances for decision making, but fortunately investors are better guided by economic fundamental indicators. To read more please click to download
“Luck is what happens when preparation meets opportunity.” Seneca the Younger
“There are more things that frighten us than injure us, and we suffer more in imagination than in reality.” Seneca the Younger
It is useful to constantly follow economic indicators to assess whether the fundamental economic outlook stays constructive.
“I cannot teach anybody anything, I can only make them think.” - Socrates
Read Fund Manger Gerrit Smit’s latest Global Equity Perspectives
“To a mind that is still the whole universe surrenders.” - Lao Tzu
Read Fund Manger Gerrit Smit’s latest Global Equity Perspectives
“To attain knowledge, add things every day. To attain wisdom, remove things every day.” - Laozi
Read Fund Manger Gerrit Smit’s latest Global Equity Perspectives
“Integrity is the essence of everything successful.” - R Buckminster Fuller
The Institute of Supply Management PMI Indices provide valuable information on US economic activity. Read More.
“Do the difficult things while they are easy and do the great things while they are small.” Laozi
The most important strategic issue for world capital markets remains the strength of the US economy. The following information can shed some light on this subject.
“The noblest pleasure is the joy of understanding.” Leonardo da Vinci
The US yield curve has made it to our front-page for the first time. Angst around trade tariffs and negative news on the German economy triggered the first inversion of the 2Y/10Y curve in the current economic cycle for a few short moments last Wednesday but featured in many headlines.
“The truth is more important than the facts.” Frank Lloyd Wright
Rolling annual GDP growth remains at the long-term average despite the second quarter moderation. Contrary to the run-up to previous recessions, the quarterly growth numbers are currently less volatile. This is rather constructive towards capital market stability.
“Things are never clear until it’s too late.” Peter Lynch
Average consensus expectations of +2.1% GDP growth were handsomely exceeded at +3.2%. This brought the annual growth to +3.2%, the highest level since 2015. Growth in international trade and building inventory accelerated, making up half of the overall growth. Consumption growth slowed to a still respectable +1.9%. Overall nominal GDP is now a fifth larger than its peak before the Great Recession (with compounded growth of +1.8% p.a.).
“Too often we enjoy the comfort of opinion without the discomfort of thought.” John F. Kennedy
The leading index’s growth continues at the previous month’s constructive level of +2.5% (on its long-term average). Against this, the growth in the current activity index in the chart continues its moderating trend. Importantly, the spread between the two series (the bottom section in the above chart) continues in positive territory. This spread has historically provided a very early warning against recession risks, but currently seems far from doing so. US – Spread Between Nominal GDP and Treasury Yield
“You will be much more in control, if you realise how much you are not in control.” Benjamin Graham
The Activity Index is still growing at a healthy +1.7%, but we can clearly expect GDP growth to moderate going forward. The major question is obviously how vulnerable the economy may be. On this note, the main US leading economic indicators continue to moderate but remain constructive.
“Life can only be understood backwards; but it must be lived forwards.” Søren Kierkegaard
We follow various US sentiment indices to better understand the outlook for economic activity. These indices do not reflect real economic data, but are useful to consider ‘the economic mood of the nation’.
“Whether you think you can, or you think you can’t, you are right.” Henry Ford
With the strong US economy consumption still makes up 69.4% of their GDP. Along with the comfort of continuing relatively constructive leading economic indicators, we also focus on the stability of consumer confidence.
“The essence of portfolio management is the management of risks, not the management of returns.” Benjamin Graham
Whilst the growth in the leading economic index has moderated to +3.0%, it is still indicating a constructive environment. Along with this, the current economic activity index’s most recent reading picked up to +2.4%. Further, the spread between the two series (the bottom section in the chart) remains in positive territory and therefore provides comfort to equity investors.
“Only the mediocre are always at their best” Jean Giraudoux
Equity markets have been spooked a few times in the recent past by fears for potentially sharper rising inflation levels in the US. These fears are mainly based on high employment and rising wages.
“The stock market is designed to transfer money from the active to the patient” Warren Buffett
The combination of the Conference Board’s index of ten leading economic indicators and industrial production serve as a solid barometer of the health of the US economy.
“It’s not the mountain that we conquer but ourselves” Sir Edmund Percival Hillary
We often start our note with a chart of a leading economic indicator to understand the risk of an imminent recession in the US.
For more information on how to invest in the Stonehage Fleming Global Best Ideas Equity Fund, click on the link below.
The Stonehage Fleming Global Best Ideas Equity Fund is available for investment via the below platforms:
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The following web pages contain information on Stonehage Fleming Global Best Ideas equity Fund. This fund is a collective investment schemes (CIS) managed by entities of Stonehage Fleming Investment Management Limited. This fund has not been approved by the Swiss Financial Market Supervisory Authority (FINMA) for distribution in or from Switzerland to Non-Qualified (retail) investors. The information contained in the following pages is only directed to "Qualified Investors" domiciled in Switzerland, in accordance with Article 10 of the Federal Act on Collective Investment Schemes of 23 June 2006 ("CISA").
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We have appointed ‘ARM Swiss Representatives SA’ as our Swiss representative for these funds. The paying agent in Switzerland is Banque Heritage S.A. The Prospectus and the Articles, KIIDs and additional documentation including the annual and semi-annual report can be obtained free of charge from the representative in Switzerland. Full contact details are contained within the fund documentation.
This site is not available in your jurisdiction. If you require further information about Stonehage Fleming Investment Management please contact us at enquiries@stonehagefleming.com.
I confirm I am accessing the website from the country indicated.
The following web pages contain information on Stonehage Fleming Global Best Ideas equity Fund. This fund is a collective investment schemes (CIS) managed by entities of Stonehage Fleming Investment Management Limited. This fund has not been approved by the Swiss Financial Market Supervisory Authority (FINMA) for distribution in or from Switzerland to Non-Qualified (retail) investors. The information contained in the following pages is only directed to "Qualified Investors" domiciled in Switzerland, in accordance with Article 10 of the Federal Act on Collective Investment Schemes of 23 June 2006 ("CISA").
By clicking on the button "I agree" you certify that: 1) you are domiciled in Switzerland 2) you are a ‘Qualified Investor’ in accordance with ‘CISA’. A ‘Qualified Investor’ is defined as:
We have appointed ‘ARM Swiss Representatives SA’ as our Swiss representative for these funds. The paying agent in Switzerland is Banque Heritage S.A. The Prospectus and the Articles, KIIDs and additional documentation including the annual and semi-annual report can be obtained free of charge from the representative in Switzerland. Full contact details are contained within the fund documentation.
This information is directed only to Canadian residents that are "accredited investors" as defined under section 1.1 of National Instrument 45-106 Prospectus Exemptions and "permitted clients" as defined under section 1.1 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. This information is not, and under no circumstance to be construed as, an offering memorandum, an advertisement or a public offering of any securities described herein in any province or territory of Canada (each, a "Canadian Jurisdiction"). Under no circumstances is this information to be construed as an offer to sell securities or the provision of advice in relation to any securities. Any offer or sale of any securities described in this information will be made pursuant to the definitive private placement documents for the securities. In addition, any offer or sale of, or advice on, any securities described in this information will be made only by a dealer or adviser registered or relying on an exemption from registration in the applicable Canadian Jurisdiction. No Canadian securities regulatory authority has reviewed or in any way passed upon the information contained in this website or the merits of any securities described in it, and any representation to the contrary is an offence.
By clicking on the button "I agree" you certify that you are an accredited investor as defined under section 1.1 of National Instrument 45-106 Prospectus Exemptions and "permitted clients" as defined under section 1.1 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.
This information on this website is only intended for a) Qualified Clients, within the meaning of that term in the Israeli Investment Advice, Investment Marketing and Portfolio Management Law 1995, OR b) Qualified Investors within the meaning of First Addendum to the Israeli Securities Law 1968. It is not intended for any other type of investor. If you are unsure about whether you meet the criteria as a Qualified Client or Qualified Investor, please seek legal advice prior to reviewing this information.
By clicking on the button "I agree" you certify that you are a) a Qualified Client, within the meaning of that term in the Israeli Investment Advice, Investment Marketing and Portfolio Management Law 1995, OR b) Qualified Investors within the meaning of First Addendum to the Israeli Securities Law 1968.
This site is not available in your jurisdiction. If you require further information about Stonehage Fleming Investment Management please contact us at enquiries@stonehagefleming.com.
The information given and services referred to are not directed at any person in any jurisdiction where (by reason of that person's nationality, residence or otherwise) the publication or availability of this information is prohibited. This information does not constitute an offer or solicitation to buy or sell, or an invitation to buy or sell shares of any Stonehage Fleming fund to any US person or to any person in the US.