REAL GROWTH IN “BLUE CHIP”

Business First - - NEWS -

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.

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