TOL - 11th Nov, 2020
5 long term themes, 10 Funds of The Future
There's never been more interest in companies and funds that are focused on investing in growth, innovation, sustainability and impact. Investing in 'the future' hasn't always been easy, as many of the opportunities were not readily accessible or didn't 'tick all the boxes' for traditional asset allocators.
The good news for investors is that there is a rapidly growing suite of investment products with a focus on themes, industries, sectors and companies that represent the opportunities of the future.
Livewire is excited to launch its inaugural Funds of the Future List, where investors can learn about these compelling opportunities and discover 10 of the funds providing exposure to where the world is heading.
5 long term themes Livewire readers like
Understanding how investors are thinking and acting is core to Livewire’s mission of providing investment insights that help our readers become more informed. Prior to launching this series, we surveyed 517 investors to understand how they are thinking about investing for the future.
- 45% said they allocate between 60% and 80% of their portfolios in long term growth opportunities.
- 56% said they intend to increase their exposure to long term growth opportunities in the next 12 months. 40% plan to remain the same with only 4% intending to decrease their exposure to long term growth.
- Direct equities remain a popular way to invest with 90% of investors using local shares and 44% using direct global equities.
- Actively managed portfolios are also playing a large role in the way investors are implementing their strategies. LICs remain popular with 42% of investors using these vehicles, 39% use managed funds and 33% use the growing pool of Active ETFs.
- Passive ETFs, which have been innovators in this area, feature heavily with 37% of participants using ETFs.
- 92% of survey participants were taking a minimum view of three years. A five year view was the most common response at 37%, a further 22% were willing to look at holding for between 6 and 10 years and 11% said they were looking to hold for longer than 10 years. The table below shows the five themes that survey participants believe represent the ‘most attractive’ growth opportunities.
The 2020 Funds of the Future List
Livewire’s inaugural Funds of the Future List showcasing 10 funds that meet one or more of the following criteria:
- Growth: Are focused on fast growing industries and companies
- Innovation: Are seeking out innovative businesses, industries and themes
- Focused: Are dedicated towards a specific opportunity
- Sustainable: Are looking at opportunities that will be viable in the future
- Positive Impact: Investing in firms that are making a positive impact
Click on the fund name or the ‘view profile’ button to learn more about the opportunity these funds pursue. List appears in alphabetical order.
Focus: Australian Shares, ESG
Portfolio Managers: Stephane Andre and Bruce Smith
“Alphinity’s investment philosophy is to invest in companies with "earnings leadership". We seek to identify and invest in attractively valued, quality companies in, or about to enter, an earnings upgrade cycle. If a company is attractively valued and in an earnings upgrade cycle, there is a strong likelihood it will outperform.” VIEW PROFILE
Focus: Unlisted and Pre-IPO
Investment Directors: David Leslie, Jamie Odell, Toni Korsanos and Anthony Klok
“We look to invest in companies with a competitive advantage in the technology they develop or use, such that they have a sustainable high growth profile. We look critically at the capabilities of company management, with a specific emphasis on their operational expertise. Finally, we always invest with the end in mind. We believe that setting clear, achievable goals with specified time horizons are the bedrock of any private investing relationship.” VIEW PROFILE
Focus: Global Shares, Sustainable Water & Waste
Portfolio Manager: Velislava Dimitrova and Cornelia Furse
“The Fidelity Sustainable Water & Waste Fund aims to deliver strong risk-adjusted returns across the cycle by investing globally in companies involved in the design, manufacture or sale of products or services in connection with the water and waste management sectors. The theme is global but impacts everyone at a local level.” VIEW PROFILE
Focus: Global Shares, High Conviction, Growth
Chief Investment Officer: Joe Magyer
“In a world where investors increasingly compete on reaction times, Lakehouse competes on patience. We believe a long time horizon provides a structural advantage in equity markets as empirical research demonstrates that low turnover aligns with superior performance. We back our best ideas with conviction. We seek asymmetric opportunities with multiple ways to win and few ways to lose.” VIEW PROFILE
Focus: Global Shares, Growth
Chief Investment Officer: Nick Griffin
“Munro’s investment philosophy focuses on the simple task of identifying and investing in companies that have the potential to grow at a faster rate and on a more sustainable basis than the peer group. Equity markets are made up of very few winners and many losers. To find these great growth winners, it takes a disciplined process, the ability to identify big structural changes and the risk management framework to protect the downside.” VIEW PROFILE
Focus: Global Shares, Disruptive Innovation
Chief Investment Officer: Catherine Wood
“Innovation is key to growth. ARK seeks to capture long-term outperformance and capital appreciation created by disruptive innovation. Disruptive innovation is the introduction of a technologically enabled product or service that changes an industry landscape by creating simplicity and accessibility, while driving down costs. ARK invests in equity securities of companies that are relevant to the investment theme of disruptive innovation.” VIEW PROFILE
Focus: Global Shares, Emerging Markets
Co-Portfolio Managers: Edward Su, Michael Roberge
“Our investment philosophy is founded on the principle of compounding. We believe the markets' shorter time horizon systematically undervalues and underestimates the ability of high-quality franchises to sustain their growth. We also believe a strong management team through prudent capital allocation can disproportionately advantage a business within Emerging Markets given the lower penetration and maturity of the industry.” VIEW PROFILE
Focus: Global Shares, Sustainability, Positive Impact
Lead Portfolio Manager: Ted Franks
“The Pengana WHEB Sustainable Impact Fund invests in a diversified global portfolio of high-quality companies that we believe are part of 'industries of the future', producing goods and services that provide solutions to sustainability challenges.” VIEW PROFILE
Focus: Global Shares, Technology & Innovation
Portfolio Manager: Thomas Rice
“We believe the market is often inefficient at pricing companies where rapid change is occurring. Focusing our efforts on understanding new innovations early provides us the opportunity to exploit this inefficiency to find undervalued and underappreciated companies.” VIEW PROFILE
Platinum International Health Care Fund
Focus: Global Shares, Health Care Companies
Portfolio Manager: Dr Bianca Ogden
“The Platinum International Health Care Fund primarily invests in health care companies listed on securities markets around the world. The portfolio will ideally consist of 30 to 100 securities that Platinum believes to be undervalued by the market.” VIEW PROFILE
Discover more insights from this series
- Visit the Funds of The Future Series to access in depth interviews with the participating fund managers.
- Register on this link If you would like to receive first access to similar series from Livewire.
Contributors mentioned: Stephane Andre, Ellerston Capital, Bertrand Lecourt, Joe Magyer, Nick Griffin, Catherine Wood, Edward Su, Michael Roberge, Ted Franks, Thomas Rice, Dr Bianca Ogden
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Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.
10 funds mentioned
13 contributors mentioned
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Livewire Exclusive brings you exclusive content from a wide range of leading fund managers and investment professionals.
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