Baring Global Growth Trust
as of 28/11/2017
Share Class Info
|Share Class||Class A GBP Inc|
|Accumulating / Distributing||Income|
|Share Class Inception Date||09/06/1986|
This fund closed on November 28, 2017. Please contact your advisor with any queries.
Please be advised, that this Trust changed from dual to single pricing on Monday 12 December 2016. This means that a single price is applied to any transaction in units whether the investor is purchasing or selling units. The single price is based on the mid-market value of the underlying investments of the Trust. For further information please review the document on the hyperlink below.
Summary fund objective
The investment objective of the Trust is to achieve long-term capital growth by investing globally.
The Trust will seek to achieve its investment objective by investing at least 70% of its total assets directly and indirectly in equities and equity-related securities of companies listed, quoted or traded on global markets, including developed and emerging markets.
For the remainder of its total assets, the Trust may also invest in fixed income and cash.
While the Trust will aim to diversify its investments, allocation to certain countries, industries or sectors may be more than 30% of its total assets depending on the Investment Manager’s assessment at different times.
In order to implement the investment policy the Trust may gain exposure through American depositary receipts, global depositary receipts and other equity related securities including participation notes, structured notes, equity-linked notes and debt securities convertible into equities. The Trust may also invest in collective investment schemes and other transferable securities. It may also use derivatives including futures, options, swaps, warrants and forward contracts for efficient portfolio management (including hedging).
Glossary of common investment terms
Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. Past performance is not a guide to future performance.
This is not an offer to sell or an invitation to apply for any product or service of Baring Asset Management and is by way of information only. Before investing in any product, we recommend that recipients who are not professional investors contact their financial adviser. The Key Investor Information Document (KIID) must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information in this document does not constitute investment, tax, legal or other advice or recommendation or, an offer to sell or an invitation to apply for any product or service of Baring Asset Management.
This commentary relates to the month of October 2017- to be read in conjunction with the factsheet.
The Baring Global Growth Trust delivered positive absolute returns in October. However, the Fund underperformed its performance comparator, the Morgan Stanley Capital International (MSCI) All Country World Index, predominantly due to company specific factors.
The portfolio’s holdings in Japanese companies were among the most significant contributors to performance in October, led by Shin-Etsu Chemical following their release of strong results and share price performance resulting from their position as a beneficiary of the improving health care industry in China. Korean health and personal care company LG Household & Healthcare was also a significant positive contributor to performance this month as sales of ‘K-Beauty’ products in China remain strong, despite China restricting tourist arrivals in Korea. We believe this is a strong endorsement for these beauty products and continue to be optimistic with regards to this company’s future growth prospects. The portfolio’s holdings in Technology companies also contributed to performance, led by Adobe Systems which posted good quarter three (Q3) results.
The Trust’s holding in Acadia Healthcare, an international treatment facility company, experienced weak performance in October as they reported disappointing revenues from their Priory clinics in the UK. Merlin Entertainments, the UK tourist attractions operator, also detracted from performance in October following disappointing results. Merlin has been seeing fewer visitors to their midway attractions, such as Madame Tussauds and The London Dungeon, citing consumers’ fears of further terrorist attacks. Though we like Merlin’s Legoland franchise, we have concerns about the susceptibility of these midway attractions to terrorism fears, which we do not expect to subside any time soon. We have subsequently sold the Fund’s position in this stock. CVS Health, an American retail pharmacy and health care company, also detracted from performance in November as they were hit by fears of increased competition amid rumours that Amazon is on the verge of gaining a pharmacy license; we continue to like CVS but are monitoring developments in this area.
We sold the Fund’s position in China Biologic Products in October as we believe that their recent acquisition of Tianxinfu does not offer great synergies and is not a good deal for the company, which also made us question their corporate governance. We also sold the Fund’s position in Merlin Entertainments, as discussed above.
It has been a good year to date for global equities. This has meant that many growth areas are now on quite rich valuations. We have responded by taking profits in some of the more expensive names to reinvest in new ideas with more upside. Volatility may increase in light of ongoing geopolitical events, such as the tensions between Spain and Catalonia, and the potential for nuclear escalation in North Korea. However, we continue to find investment opportunities in high quality companies that are reasonably valued, with compelling growth prospects that are somewhat resilient to these political risks.
strong long-term growth potential for these companies. The portfolio currently has holdings in a number of companies which we expect will benefit from this trend, including Visa, Mastercard and Wirecard.
The information available on this website is not an offer to sell or an invitation to apply for this product and is by way of information only, nor is the information available on this website intended as an offering of this product to US Persons. Depending on your jurisdiction, you may not have access to this product. Individual investors should contact their financial advisor before investing in this product. The Key Investor Information Document (KIID), if applicable, must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information available on this website does not constitute investment, tax, legal or other advice or recommendation.