Munro Partners launches concentrated global growth fund
Munro Partners and responsible entity GSFM have launched the Munro Concentrated Global Growth (MCCG) fund, available on the Australian Securities Exchange (ASX).
The fund aimed to maximise long-term capital appreciation for investors through exposure to a concentrated long-only portfolio of growth-oriented equities issued by companies located anywhere in the world, except for Australia.
The fund gained its investment exposure by investing in units of an underlying fund, the Munro Concentrated Global Growth fund and aimed to achieve a return greater than the MSCI World (Ex-Australia) Index over a five-to-seven-year period.
Nick Griffin, Munro Partners’ chief investment officer, said the fund’s investment strategy was designed to identify sustainable growth trends that were under-appreciated and mispriced by the market, and invest in the resulting winning stocks.
“One – that earnings growth drives stock prices and companies that consistently earn more than the year before are generally rewarded with higher stock prices over time,” he said.
“Two - that sustained earnings growth is worth more than cyclical earnings growth and that consistent growth, independent of cyclical factors and above the peer group, is generally valued at higher multiples than otherwise.
“And finally, that consensus earnings estimates often underestimate growth, while pegging to market multiples will often underestimate the sustainability and cash generation capacity of that growth. This presents opportunities to invest in stocks well below their intrinsic value.”
GSFM was the responsible entity and distributor of the Munro Concentrated Global Growth fund, as well as the Munro Climate Change Leaders fund and the Munro Global Growth fund, in the Australian and New Zealand markets.
GSFM chief executive officer, Damien McIntyre, said global equity markets were set to enter a new growth phase into 2022, and that this presented real opportunities.
“This fund is for investors who are seeking a long-term exposure to a concentrated portfolio of growth oriented global equities with the potential for capital gain. It can be used as either a core component or satellite within a portfolio for investors with a high risk/return profile, and a medium-to-long term investment timeframe, but who still wants the option of daily access to capital.
“This is the third ASX-quoted fund for Munro Partners, and it is a structure that appeals to many investors. It offers diversification, liquidity and transparency, taxation advantages and lower costs,” Mr McIntyre said.
The MCCG fund had a management fee of 0.70% per annum of the fund’s net asset value.
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