Signet Equity Fund


Investment Objectives

The Fund’s objective is to generate sustainable long-term returns by investing in equities in developed countries.

There can be no guarantee that the Fund will achieve its objective.

Investment Policy

In order to achieve its investment objective, the Fund will invest in equities with a long-term perspective. As such, the Investment Manager will focus on companies it considers as valued attractively, with a clear and definable edge that is difficult to replicate, high and sustainable return on capital employed, whose competitive advantages are strong and whose cash flows have a high degree of predictability and high likelihood of growth.

Special focus is given to businesses with recurring revenue streams, subscription type business models and businesses managed to build a market platform creating long-term competitive advantages.

The Investment Manager will aim to select securities of companies with high quality businesses. The Investment Manager aims to identify these prospective target companies using both qualitative and quantitative fundamental research criteria based on a selection of the following characteristics:

  1. structurally profitable business models that are not under risk of losing competitive position within the next five years;
  2. growing businesses with clear revenue and profit growth pattern over the last and next five years (expected);
  3. market leading positions which are hard to undermine;
  4. positive operating leverage;
  5. ability to at least sustain margins, ideally improve (i.e. use pricing power);
  6. good management with substantial industrial experience;
  7. highly cash generative / low capital-intensive business models; and
  8. compounding, non-cyclical business models and understandable, market standard management compensation policies.

While investments are selected based on thorough bottom-up research, the Investment Manager will employ a long-term buy-and-hold approach with low portfolio turnover. The bottom-up research undertaken by the Investment Manager will generally involve an assessment of a target company’s fundamentals and may include an assessment of such factors as its future growth prospects, management quality and cash generation. The target company’s fundamentals refer to those aspects of the company which can be thoroughly investigated by the Investment Manager in order to identify the likely profitability of the company and the potential returns for investors in the Fund. Such fundamentals include the company’s financial statements, cash flow, business contracts, management team, previous performance, potential for expansion, etc. This is considered alongside an assessment of valuation, such that the Investment Manager only invests in those equities which it believes are trading at a discount to fair value and are accordingly positioned to outperform the wider equity market over the longer term.

For further details, please download the Prospectus and Supplement to the Prospectus below.

 

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Latest factsheet Download
Key Investor Information Document (KIID) Download
Application form Download
Prospectus Download
Supplement to the prospectus Download
Latest interim financial statements Download
UCITS Financial Audit 2018 Download
Remuneration Policy Download

Fund Identification

ISIN: IE00BJN6RP14

Sedol: BJN6RP1

Bloomberg: n/a