As a new fund manager with one new fund I am justly proud of the CCM Intelligent Wealth Fund because it is of course my baby. However, this isn’t just new boy enthusiasm rather it is based on pride about how well we have structured our fund.
Our fund is deliberately different to any other fund in the UK. That means it has something known as High Active Share.
Active Share is a measure of the percentage of shareholdings in a manager’s portfolio that differs from the benchmark index. The researchers Cremers and Petajisto of the Yale School of Management conducted a study in 2006 which concluded that managers with high Active Share outperform their benchmark indices and Active Share significantly predicts fund performance.
Because our fund is a collective investment scheme it offers investor protection to investors in ETFs and investment trusts which would be denied them if they were to invest into these funds directly.
Ours is the only UK fund that invests solely into disruptive and innovative companies that are shaping our future.
Our fund is the only one that invests in 8 investment themes of the future.
Because of our two above mentioned strategies the companies we invest in have the greatest growth prospects for the future.
We focus on companies that generate high profits and have a market advantage typically through market domination and/or differentiation.
World stockmarkets as measured by the MSCI World Index have significantly outperformed the FTSE 100 Share Index and the FTSE All Share Index over the last 5 years and 10 years respectively. Most fund managers suffer from home bias in their respective home countries by investing mainly in domestic companies. Our fund is a global equities fund so it will benefit investors more by capturing greater growth from overseas companies and not suffering from home bias and the resulting lower returns.
Approximately two thirds of our fund will be invested into low cost ETFs and investment trusts which will result in a much higher diversification of underlying shares meaning the risk level of the fund will be significantly reduced.
Because we will maintain a primarily buy and hold strategy our Portfolio Turnover Rate or churn will be very low. This is a hallmark of high performing funds. It is also a strategy followed by the world’s most successful and richest investor Warren Buffet. It also means that returns will not be seriously eroded by trading costs.
A number of the direct equities we invest in could be considered funds in their own right such as Alphabet the owners of Google which itself has more than 100 subsidiaries in different sectors and markets.
Moreover many of the direct equities we invest in will incorporate multiple themes out of the 8 themes we have chosen. Tesla for example is in the renewable energy, robotics and transport themes.
Because innovative and disruptive companies tend to be technology companies or technology led businesses or renewable energy companies it should be considered to be a highly ethical/environmental fund which will be of particular appeal to charities and organisations that champion such an approach.
We think that the CCM Intelligent Wealth Fund is truly unique and has been structured in a clever way hence the use of the word Intelligent in its title! So why don’t you be clever too and invest in our fund? You know it makes sense.
