Evenlode Investment to launch global equity strategy for UK and European investors
Evenlode Investment, the Oxfordshire-based independent investment manager, is bolstering its global equity proposition with the launch of the TB Evenlode Global Equity Fund for UK investors (a sub-fund of the TB Evenlode Investment Funds ICVC), and its Irish-domiciled mirror fund, Evenlode Global Opportunities (a sub-fund of the Evenlode ICAV) for the European market.
While Evenlode has seeded the strategy since July 2020, both funds will be available to investors from May 4th, with the Global Opportunities UCITS launch subject to Central Bank of Ireland approval. The strategy is managed by co-portfolio managers Chris Elliott, who runs the Evenlode Global Income Fund alongside Ben Peters, and James Knoedler, who joined Evenlode in April 2020 in preparation for the fund’s launch. The TB Evenlode Global Equity Fund is GBP denominated, while Evenlode Global Opportunities will have EUR and USD share classes.
The strategy employs the same process and philosophy as the TB Evenlode Global Income Fund, maintaining Evenlode’s time-tested approach of conducting detailed fundamental analysis and taking a long-term time horizon, but not constrained by having to maintain a level of dividend payments. As with all Evenlode strategies, engagement-led stewardship is integral to the strategy’s process and the investment team will integrate ESG factors to ensure sustainable returns for investors in the fund.
Elliott and Knoedler take a bottom-up concentrated approach, holding between 30 and 50 companies in the portfolio over long periods. The strategy’s benchmark is the MSCI World Index and it will target a diversified universe of high-quality businesses across geographies, capable of delivering real free cash flow at attractive rates over the long term.
The strategy, which will sit in the IA Global sector, will have a true active approach and bias towards larger market capitalisations. It will aim to deliver capital growth over rolling periods of five years by investing across the world in companies with diverse multi-national revenue streams, consistent recurring revenue, and durable competitive advantages.’
The launch is part of Evenlode’s natural and incremental evolution that has seen the business expand outside its traditional UK client base. The firm has seen significant asset growth since inception, with the launch of the Evenlode Income Fund, and has begun to expand its client universe into the institutional space and European markets. Evenlode Investment’s combined assets under management are now at GBP4.72 billion.
Chris Elliott, co-portfolio manager of the Evenlode Global Equity Fund, comments: “The new strategy will maintain the team's investment process of seeking companies with sustainable asset-light business models, with an emphasis on those delivering high returns on capital and high cashflow conversion over the long term.
“The funds should appeal to UK and European advisers and wealth managers, but also institutional clients seeking a well-defined global equity strategy with a repeatable process that will not succumb to style drift.”
The strategy aims to build on the momentum of Evenlode’s successful Global Income Fund, which has attracted GBP1.1 billion in assets under management since its 2017 launch, and the subsequent launch of the Irish-domiciled Evenlode Global Dividend Fund. The portfolio managers will also draw on Evenlode’s growing analyst resource, and its stewardship and innovation teams. By providing a complementary true total return strategy, Evenlode will broaden its global equity offering.
Evenlode Global Equity Fund co-portfolio manager James Knoedler says: “With the launch of the Evenlode Global Equity Fund, we are expanding the range of solutions available to our investor base.
"We have a forensic investment approach focused on unearthing competitively advantaged businesses that compound free cash flow over time. We prioritise the quality of investable companies, with a process which emphasises deep analysis of the idiosyncratic growth drivers and investment risks of each company in our universe and portfolio.”