K2 launches long-only international equities fund
K2 Asset Management has launched a new long-only international equities fund off the back of its existing international equities fund and has already received funds flow from three independent financial planning groups.
The K2 International Opportunities Fund will be managed by the same team responsible for the K2 Select International Fund, led by K2 head of international investments Nick Griffin and using the same stock selection process.
According to Griffin the high conviction global equity fund will use an investment process which focuses specifically on sectors that are boosted by secular or structural growth.
Under-appreciated stocks which show earnings growth potential unrelated to the economic cycle will be selected, with the process operating on a regional- and sector-unaware basis.
The fund will have a concentrated portfolio of 20 to 40 stocks. Griffin stated the portfolio had a 10 per cent limit in any single stock but would not have any country or sector limits.
The fund will carry a management fee 1 per cent and a relative performance fee of 10 per cent above the MSCI AC World Index, subject to the Reserve Bank of Australia cash rate hurdle.
The K2 Select International Fund, on which the new fund is modelled, has produced a compound annual return of 12.2 per cent since inception in 2005.
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