Garraway offers active global equity fund at 0.25%
7 May 2019
Garraway Capital Management LLP (Garraway) was appointed as the Investment Manager to Garraway Global Equity Fund in November 2017. Our reasons for this move were straightforward; we thought it was important to add a quality global equity fund to our range, thereby diversifying our own product offering. We were impressed with Malcolm Schembri‘s track record and in him we found a Fund Manager with a clear, focussed investment strategy.
Garraway offers its fund managers a distribution network as well as the regulatory and support infrastructure they need without requiring them to compromise on investment policy or style. As with any change of situation, our investors asked for a period of reflection in order to ensure Malcolm settled well into Garraway and continued to perform as before. Over a year later, we have delivered on that commitment.
Garraway is entering an exciting new phase in its history; the recent addition of the Absolute Equity fund and the Multi-Asset range is evidence of that. To complement this growth in our business, we believe now is the time to back Malcolm and give investors the chance to exploit the opportunity provided by the Garraway Global Equity Fund.
Investors have told us that the ongoing charges figure (OCF) of the Fund is too high; and we agree. At its current size, the Fund’s fixed costs are masking the manager’s underlying performance. To remedy this, we are opening a founder class for a limited time; investors in this class will receive a reduced annual Investment Management Fee of 0.25%.
Why Garraway Global Equity Fund? The 3 Ms: Moat, Management, Margin of Safety
Malcolm Schembri likes firms that have some form of sustainable competitive advantage; goods and services that are hard for others to replicate; an economic moat. These firms enjoy high profits and strong cash flows year after year.
Malcolm likes honest, astute and transparent individuals with proven track records. Strong management teams reinvest these strong cash flows in their businesses year after year. They keep debt at sensible levels, retain key staff and are better able to deal with economic or political turmoil.
It is important to invest at the right price. The investment opportunities have to be high quality businesses with clear understandable business models. Malcolm avoids cyclical companies, banks and insurance companies, helping the Fund avoid external factors, nasty surprises and fair value uncertainty. By seeing the world through the eyes of the business owner and feeling confident in the reliability of the valuation of the companies he invests in, Malcolm feels confident in his ability to invest at the right price, thereby adding a margin of safety to the investment process.