REAL GROWTH IN “BLUE CHIP”
Clime Asset Management has joined other local value fund managers taking an international focus with the launch of its Clime International Fund, which seeks to tap into strong Asian growth and an economic recovery in the US and Europe.
Clime has partnered and mandated global value investor, Sanlam Private Investments, to co-manage the Fund. Sanlam Private Investments manages private portfolios of $US10 billion and the Sanlam Group has over $US100 billion funds under management for investors worldwide.
Clime’s Chief Investment Officer, John Abernethy, says the absolute return fund is designed to give sophisticated investors an opportunity to invest in a more diverse and dynamic group of blue chip international securities.
“Investors need to allocate capital offshore,” Abernethy says. “But they can’t just buy markets. The opportunities are in selective stocks, particularly multinationals that are tapping into Asia’s and emerging markets’ growth.”
Abernethy says Clime launched the fund because of the significant opportunities opening up for Australian investors offshore, particularly with economic recovery in developed economies.
“The US and Europe are emerging from recession,” he says. “The Australian dollar is also trading 20 per cent above its post-float average despite falls in the past few months, which makes offshore stocks attractive.”
Abernethy says international stocks also allow Australian investors to diversify away from resources and banks, and he sees opportunities in food processing, branded consumable goods, IT services, pharmaceuticals and intellectual property.
The Clime Australian Value Fund is one of the top-performing Australian equity funds having generated 19.5% per annum in the five years to February 2014. The International Fund will follow a similar value investment methodology philosophy, which Abernethy says Clime shares with Sanlam.
The fund is a unit trust with a minimum investment of $A200,000, and aims to achieve a double-digit $A total return after all fees measured over a rolling five-year period. Abernethy says the aim is to remain unhedged in most circumstances, but he says Clime can hedge currency risk if it needs to.