The Intelligent Wealth Fund is available for investment by institutions such as businesses, company pension schemes, funded public sector pension schemes, charities, trusts, the public sector, local authorities, clubs, societies et al.
Institutions benefit from lower fees which are discounted by 0.2% a year or twenty basis points. This reduces the OCF (Ongoing Charges Figure) of the fund from 1.3% to 1.1% which equates to an annual saving of 15.38%.
The minimum investment for institutions is £250,000 though smaller investments will be considered on request.
The CCM Intelligent Wealth Fund is particularly suitable for institutions which seek higher investment returns and greater investment diversification than is given by their existing investment strategy.
Research shows that the average active fund manager underperforms its benchmark stockmarket index by 2% a year on average. Even passive fund managers who track indices underperform the indices once their charges are taken into account.
The CCM Intelligent Wealth Fund is a global equities fund with an medium to high risk rating of 5 out of 7. This is based on a scale of 1 to 7 with 1 being the lowest level of investment risk and 7 the highest. So the fund should be considered as an above average risk element of an overall portfolio.
Because the fund invests primarily in innovative and disruptive companies that are shaping our future based on 9 investment themes with the greatest growth potential over the next 5-10 years of the current fourth Industrial Revolution it should be considered as highly uncorrelated to the vast majority of existing portfolios.
Moreover because approximately two thirds of the fund is invested in low cost ETFs (Exchange Traded Funds) and investment trusts it means that the number of underlying shares is significantly above the average for a fund. This much greater diversification of underlying shareholdings reduces the effective risk level of the fund.
Our fund is deliberately different to any other fund in the UK. That means it has something known as High Active Share.
Active Share is a measure of the percentage of shareholdings in a manager’s portfolio that differs from the benchmark index. The researchers Cremers and Petajisto of the Yale School of Management conducted a study in 2006 which concluded that managers with high Active Share outperform their benchmark indices and Active Share significantly predicts fund performance.
Because our fund is a collective investment scheme it offers investor protection to investors in ETFs and investment trusts which would be denied them if they were to invest into these funds directly.
We focus on companies that generate high profits and have a market advantage typically through market domination and/or differentiation.
World stockmarkets as measured by the MSCI World Index have significantly outperformed the FTSE 100 Share Index and the FTSE All Share Index over the last 5 years and 10 years respectively. Most fund managers suffer from home bias in their respective home countries by investing mainly in domestic companies. Our fund is a global equities fund so it will benefit investors more by capturing greater growth from overseas companies and not suffering from home bias and the resulting lower returns.
Because we will maintain a primarily buy and hold strategy our Portfolio Turnover Rate or churn will be very low. This is a hallmark of high performing funds. It is also a strategy followed by the world’s most successful and richest investor Warren Buffet. It also means that returns will not be seriously eroded by trading costs.
A number of the direct equities we invest in could be considered funds in their own right such as Alphabet the owners of Google which itself has more than 100 subsidiaries in different sectors and markets.
Moreover many of the direct equities we invest in will incorporate multiple themes out of the 8 themes we have chosen. Tesla for example is in the renewable energy, robotics and transport themes.
Because innovative and disruptive companies tend to be technology companies or technology led businesses or renewable energy companies it should be considered to be a highly ethical/environmental fund which will be of particular appeal to charities and organisations that champion such an approach.
We are member of PRI, Principles of Responsible Investment, and we follow the principles. The six Principles for Responsible Investment are a voluntary and aspirational set of investment principles that offer a menu of possible actions for incorporating environmental, social and governance, ESG, issues into investment practice. The Principles were developed by investors, for investors. In implementing them, signatories contribute to developing a more sustainable global financial system.
As the CCM Intelligent Wealth Fund has so many differentiating and compelling features to it we consider it to be an essential element in any institution’s investment portfolio. It ticks all of the boxes!
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The value of investments can fall as well as rise. You may not get back what you invest.