MAB-Quarterly-Review-Q2-2025-Adventurous - Flipbook - Page 5
Portfolio changes
Complete sales
New buys
Lindsell Train UK Equity Fund:
Evenlode UK Select Fund:
This fund was part of our UK equity blend and provided
exposure to a group of high-quality, primarily global
brands and businesses that happen to be listed on
the UK stock market. Although Lindsell Train’s recent
results had been disappointing, our decision to move
this exposure to the Evenlode UK Select Fund was
not primarily driven by performance, as Evenlode’s
recent results had also been challenged, but more by
the fact that we felt Evenlode’s extensive team were
implementing a very similar philosophy to Lindsell
Train’s but in a stronger and more robust research
and risk framework. As a result, we felt we could
implement an upgrade to this exposure without
giving up the proven bene昀椀ts of this strategy over
the longer term.
Evenlode is an employee-owned fund manager
founded in Oxford in 2009. The 昀椀rm has grown to over
30 people, 18 of whom are on the investment teams
managing UK equity and global equity funds. The UK
equity strategy has a sole focus on ‘quality’ companies,
de昀椀ned as those able to generate sustainable growth
in typically market-leading businesses, with high
barriers to entry and high 昀椀nancial strength. Since
2009, the team have delivered an exceptional track
record that has signi昀椀cantly outperformed the
UK equity market with lower volatility and lower
drawdowns in weaker equity markets. Although
their more recent performance had lagged the UK
market, their long-term return pro昀椀le provides a very
attractive complement to the pro昀椀les of the Fund’s
other incumbent UK equity managers that invest with
a very different style.
Amundi Russell 1000 Growth ETF:
While this position provided targeted exposure to the
fastest growing areas of the US market, like technology
and AI, which have driven US market performance in
recent years, elevated valuation levels have increased
the overall risk pro昀椀le of this exposure. Valid questions
are beginning to emerge about the sustainability of
the pro昀椀t growth required to support these elevated
valuations. In addition, higher concentration within
the underlying Russell 1000 Growth index has added
an additional dimension of risk. As a result, we have
exited the position, which has been highly pro昀椀table
for the Fund, rotating the proceeds into the existing
Invesco S&P 500 ETF. Although many of these highgrowth companies are still held in the S&P 500 Index,
they are collectively held at a lower weight and, as
such, we believe the S&P 500 now provides a more
balanced way to access US growth opportunities
within a broader and more diversi昀椀ed framework.
52
ARGA European Fund:
The fund aims to generate long-term returns by
investing primarily in European equities that are
priced at a material discount to their perceived
intrinsic value, typically selecting good businesses
going through a temporary issue or a restructuring
phase, which has led them to trade on an unusually
depressed valuation. The manager’s investment
style and underlying portfolio are very different
to the two incumbent active managers, adding a
welcome additional layer of style diversi昀椀cation to
our European exposure.
Manager Meetings
We attended 52 meetings during the quarter to review
existing and prospective managers.
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