I am delighted to inform readers that the CCM Intelligent Wealth Fund achieved top quartile (top 25%) performance over the last quarter of 2019. Our fund was ranked 26th out of 205 funds in the Investment Association Global sector. So in fact our fund was only just outside the top decile (top 10%) of funds for the last 3 months of 2019.
Ever since we launched the CCM Intelligent Wealth Fund on 16 April 2018 we have found investment conditions very challenging. What with the trade war between the USA and China, rising tensions in the Middle East, a General Election in the UK and Brexit, it has proven to be a very difficult time to launch a fund.
We have found it especially difficult to find value in that many shares, especially US ones, are way over-valued in our opinion.
The fund got off to a very promising start in that it achieved growth over the first four and a half months. Then Trump started the trade war with China in October 2018. Our fund was 75% invested in large US and Chinese stocks at the time. As a result the fund moved rapidly into a loss within a matter of just 2 short weeks.
We subsequently sold all of our Chinese shares and reduced our holdings in US companies. We totally revamped our entire approach into a value investing style. This means that we only invest in excellent but under-valued companies. All over-valued companies have been sold. We continue to invest in innovative and disruptive companies that are shaping our future based on the 7 investment themes we have selected.
Over the last 12 months our new investment strategy has started to pay off. We achieved an investment return in 2019. Not bad considering the challenging investment conditions.
Our fund is now packed with high quality, under-valued stocks whose value hasn’t yet been recognised by the stock market and other investors. We think it is just a matter of time before these shares’ value becomes recognised. When this happens we expect a number of our shares to rise in value considerably.
So we look forward to 2020 which we expect to be our breakthrough year when our fund truly comes of age. Once the fund has a 3 year past performance record by mid-April 2021 we expect a lot of interest from external investors. From then onwards I expect the CCM Intelligent Wealth Fund to grow in size considerably.
We look forward to the future with confidence.
