High conviction global equities boutique, Swell Asset Management, has received an “Investment Grade” rating for the Swell Global Portfolio from leading research house, Lonsec.[1]
This rating complements the manager’s “Superior” rating from SQM Research[2] and reaffirms its ability to generate risk adjusted returns in line with its stated objectives.
“Swell considers itself a quality-focused value investor but has also described its style as closely resembling a blend approach as some holdings have growth characteristics,” the Lonsec report stated.
“Swell’s strong emphasis on a company’s quality, competitive advantage and economic moat is viewed as introducing a growth dimension to the philosophy, which has been observed empirically, and more closely resembling a growth at reasonable price approach.”
Swell Chief Executive Officer, Stephen Poole said the group’s unique investment process had delivered strong investment outcomes for wholesale investors for the past six years, leading to the September launch of the Swell Global Portfolio to give retail investors access to the manager’s capabilities.
“We are looking forward to working with financial advisers and investment consultants,’’ he said.
Swell’s global portfolio is a concentrated portfolio of between 10-20 large companies.
It aims to return 9 per cent per annum (net of fees) over rolling three-year periods.
The fund’s “Superior” rating from SQM Research reflects Swell’s “appreciable potential to outperform over the medium-to-long term”.
According to SQM, Swell has a “robust” investment philosophy, and stock selection and portfolio construction process.
“The strategy employs rigorous and demanding investment criteria with an emphasis on screening for superior business quality, growth and valuation. Sectors deemed high risk are generally avoided,” the SQM report stated.
As at August 31, 2021, Swell Asset Management had $105.5 million under management.
For the five years to October 31, 2021, Swell’s absolute return strategy has returned 19.96% annualised.
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