Evenlode Investment is set to launch a global equity fund for UK investors, which will follow the same philosophy and process as TB Evenlode Global Income without being constrained by having to maintain a level of dividend payments.
TB Evenlode Global Equity Fund will coincide with the launch of an Irish-domiciled mirror fund, Evenlode Global Opportunities (a sub-fund of the Evenlode ICAV) for the European market, subject to regulatory approval.
The funds will also benefit from engagement-led stewardship and will integrate ESG factors to ensure sustainable returns.
We have a forensic investment approach focused on unearthing competitively advantaged businesses that compound free cash flow over time."
Co-managed by Chris Elliott and James Knoedler, theUK-domiciled fund will sit within the IA Global Equity sector and use the MSCI World index as its benchmark.
Evenlode hired Knoedler in May 2020, with the intention of launching the Evenlode Gloabl Equity fund.
Launching on 4 May, the portfolio of 30 to 50 stocks will take a bottom-up and long-term approach in selecting a diversified universe of high-quality businesses across geographies, capable of delivering real free cash flow at attractive rates.
With a bias towards larger market capitalisations, TB Evenlode Global Equity will aim to deliver capital growth over rolling periods of five years by investing in global companies "with diverse multi-national revenue streams, consistent recurring revenue, and durable competitive advantages", the firm said.
The portfolio managers will also draw on expertise from Evenlode's analyst, stewardship and innovation teams.
Evenlode has seeded the strategy since July 2020 and is now making the fund available to investors.
Commenting on the launch, Elliott said the new fund "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," he added.
Knoedler said: "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."
First published by our sister title Investment Week