Canaccord Genuity Wealth Management’s Select Global Opportunity strategy celebrates 15 years this month, marking a decade and a half of outperforming other funds in its peer group, averaging a return of 8.2% since its inception – compared to 3.0% for its peers - and with AUM currently at US$280million (as at 31 March 2016).
Launched in 2001 as the FPI Collins Stewart Aggressive Fund with Friends Provident International (FPI), the Fund started life at the same time as the dotcom bubble burst and the Enron and Worldcom scandals broke. Its initial performance was a sign of things to come as it kept its value in US dollar terms from launch until the end of 2002, buoyed by a weighting in Asian and Eastern European equities. At the same time, other investments in its peer group fell by an average of 12.9% and global equities, as measured by the FTSE World TRI USD Index, fell 27.5%.
Having weathered the tech crash and accounting storm, the Fund moved from a defensive stance to take advantage of the five-year bull market that followed, returning over 125%. Despite its auspicious start in troubling times, for the first six years of its existence, the Fund remained a bit of a hidden gem.
From hidden gem to jewel in our crown
All this changed in 2008, when the launch of the Canaccord Genuity Wealth Management Select range opened the Fund to all clients, re-branding to reflect its potential. The re-launch coincided with the global financial crisis, but as global equities plummeted, the manager raised cash to over 40% to mitigate the worst of the falls; by the end of November 2008 the Fund was only down 27.4% compared to a 43% loss for the FTSE World TRI USD Index. The Fund’s strategy as the crisis neared its end was to embrace risk, focusing on thematic plays in unloved sectors of the market. This enabled the Fund to return over 33% in 2009 and recoup its losses much faster than global equities. Since September 2008, the Select Global Opportunity Fund’s assets have grown at an annualised rate of 35.5%.
What exactly is the CGWM Select Global Opportunity Fund and what kind of investor would it suit?
The Fund is attractive to both regular savers and lump-sum investors with investment horizons of three to five years, as it is often exposed to short term volatility. It’s opportunistic and can move quickly between strategies, shifting weightings quickly – what could be a 20% Asian weighting one day can become a 20% US weighting the next (as illustrated by the chart below). The strategy is to use insight, backed up with thorough research, with a good dose of gut feeling. Whilst there is a robust investment process in place for fund selection, we are not tied to any benchmark. Mark believes this approach combined with dynamic and focused asset allocation has created the Fund’s attractive long-term record. We’re looking forward to continuing our performance for the next 15 years!
Before investing in this fund you should consult both the prospectus and Key Investor Information Document (KIID) which can be found in the investment funds section of our website www.canaccordgenuity.com.Past performance is not an indication of future returns. The value of investments can go down as well as up and investors may not get back the amount they originally invested. The fund is priced in US$. These returns may differ significantly when converted to other currencies at the prevailing exchange rates. Performance data source: CGWM, Morningstar.
This Fund invests principally in units in Collective Investment Scheme (CIS). It is permitted to invest more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by an EEA state, one or more of its local authorities, a third country or a public international body to which one or more EEA states belong.
Canaccord Genuity Wealth Management is a trading name of Canaccord Genuity Wealth Limited (“CGWL”) and Canaccord Genuity Financial Planning Limited (“CGFPL”), both of which are authorised and regulated by the Financial Conduct Authority. Both are wholly owned subsidiaries of Canaccord Genuity Group Inc. and have their registered office at 41 Lothbury, London, EC2R 7AE. CGWL is registered in England no. 03739694, CGFPL is registered in England no. 02762351. Canaccord Genuity Wealth Management (“CGWM”) is a trading name of Canaccord Genuity Wealth (International) Limited (“CGWI”) which is licensed and regulated by the Guernsey Financial Services Commission, the Isle of Man Financial Service Authority and the Jersey Financial Services Commission and is a member of the London Stock Exchange and the Channel Islands Securities Exchange, CGWI is registered in Guernsey no. 22761 and is a wholly owned subsidiary of Canaccord Genuity Group Inc. Registered office: Trafalgar Court, Admiral Park, St. Peter Port, Guernsey, GY1 2JA.
This promotion reflects Canaccord Genuity Wealth Management’s present opinions reflecting current market conditions and assumes a number of presumptions that may not prove valid. The promotion is not an offer of any particular security, strategy or investment product. The information provided is not to be treated as investment advice. It has no regard for the specific investment objectives, financial situation or needs of any specific person or entity. The information contained herein is based on materials and sources that we believe to be reliable, however, Canaccord Genuity Wealth Management makes no representation or warranty, either expressed or implied, in relation to the accuracy, completeness or reliability of the information contained herein. All opinions and estimates included in this document are subject to change without notice and Canaccord Genuity Wealth Management is under no obligation to update the information contained herein.
Canaccord Genuity Wealth Management and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments.
The CGWM Select Global Opportunities Fund referred to in this promotion is a sub-fund of the Canaccord Genuity Investment Funds plc (“CGIF”). Canaccord Genuity Investment Funds plc (“CGIF”) is an umbrella fund with segregated liability between sub-funds. CGIF is incorporated with limited liability as an open-ended umbrella investment company with variable capital under the laws of Ireland with registered number 367917 and authorised under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011. The registered office of CGIF is 25-28 North Wall Quay, IFSC, Dublin 1, Republic of Ireland. CGIF is regulated by the Central Bank of Ireland. CGIF is a recognised collective investment scheme for the purposes of Section 264 of the UK Financial Services and Markets Act, 2000. CGIF is classified as a Restricted Scheme by the Monetary Authority of Singapore under paragraph 2(3) of the Sixth Schedule to the Securities and Futures (Offers of Investments)(Collective Investment Schemes) Regulations 2009. CGIF is recognised in the Isle of Man under Paragraph 1 of Schedule 4 to the Collective Investment Schemes Act 2008. The Isle of Man Financial Supervision Commission does not vouch for the correctness of any statements or opinions expressed with regard to CGIF. CGWI is registered under the Financial Services (Jersey) Law 1998 (as amended) to carry out “funds services business”. The Jersey Financial Services Commission is protected by the Financial Services (Jersey) Law 1998, against any liability arising from the discharge of its functions under those laws.