Alphinity Global Equity Fund passes three year milestone, receives ‘Recommended’ Zenith rating

Jonas Palmqvist

Jonas Palmqvist

The Alphinity Global Equity Fund (the Fund) celebrated its third anniversary in December and was recently awarded a ‘Recommended’ rating by Zenith.

In addition, the Fund received a four-star Overall Morningstar Rating™ as at 31 December 2018. The strategy, which sits under the umbrella of leading Australian boutique fund manager, Alphinity Investment Management, is run by a separate team focused on global opportunities.

Alphinity Investment Management was established in July 2010 and built a formidable reputation for its consistent outperformance managing Australian equities. This success saw it add global capability to its team and launch the Fund on 21 December 2015. The Fund has outperformed MSCI World Net Return (AUD) across all reported time periods to 31 December 2018*, returning 8.2% per annum since inception, 11.5% per annum over two years, and 2.4% over the past year, including the recent market correction (all figures net of fees).

Alphinity’s global fund is managed by four portfolio managers, each with more than 20 years of experience; Jonas Palmqvist, Jeff Thomson, Lachlan MacGregor and Nikki Thomas.

The team’s investment philosophy is to provide investors with an actively managed exposure to a high conviction portfolio of leading global companies with underappreciated earnings growth potential. It identifies these companies using a unique partnership between detailed analyst-driven fundamental research and specific targeted quantitative inputs.

In its rating report, Zenith described the Fund as ‘well managed’ by a ‘highly experienced’ team of investment professionals and said the team’s investment process was ‘intuitive and robust’. Alphinity’s global strategy has $1 billion of funds under management, of which around $37 million are from early investors in the retail Fund.

Jonas Palmqvist said the fund management team was appreciative of the institutional support the Fund had received in its first three years and was looking forward to bringing the Fund to retail investors this year now it has a strong track record.

“The key to our success and the recent Zenith rating has been what we call ‘conviction with consistency’” said Jeff Thomson. “The Fund typically holds only 30 to 45 stocks but with broad diversity across market sectors and regions. We focus on rigorously testing and refining our best ideas to the point where we have a high degree of comfort that the ones we invest in will achieve strong returns. As the world backdrop changes, we adapt the portfolio and this has seen the strategy outperform across all time periods since inception.”

Alphinity Investment Management is supported by its minority shareholder, Fidante Partners, the boutique funds management business of Challenger Limited.

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