The Ocean Equity Fund does not have an objective linked to the oceans or marine bio-diversity but the Fund Manager may choose to invest in companies that derive their revenue from shipping and energy transition sectors.
Ocean Equity Fund invests predominantly in businesses that are listed in the United Kingdom (UK) or which conduct a significant part of the business in the UK. Up to 20% of the fund is invested in shares in companies listed outside of the United Kingdom, mainly in the USA and Europe. Companies are selected because they typically exhibit the following characteristics:
experienced and proven management with integrity and strategic vision
sensible and actionable plans to grow and develop the business
relentless focus on customer proposition and service
attractive end markets that are often fragmented
strong and growing competitive positions
strong and sustainable cash generation
no or modest debt
Investment Philosophy & Process
An investment philosophy represents a set of core beliefs about how investors behave and markets work. To be a successful investor, you not only have to consider the evidence from markets but you also have to examine your own strengths and weaknesses to come up with an investment philosophy that best fits. Investors without core beliefs tend to wander from strategy to strategy, drawn by anecdotal evidence or recent successes, creating transaction costs and incurring losses as a consequence. Investors with clearly defined investment philosophies tend to be more consistent and disciplined in their investment decisions.
Our investment philosophy is formulated around people, products, and services. People ultimately drive businesses for the betterment of society by providing choice via differentiated products that have the potential to deliver better societal outcomes. We think it is critical that businesses serve a societal requirement and responding to this ever-shifting obligation requires careful, strategic thought and capital allocation. This strategic thought process encompasses making the right investment decisions at the outset and, critically, holding onto these businesses for the long-term; both of which require strong analytical skills and patience.
Our investment process is formulated around the identification of very high-quality businesses. Typically such business would have high, sustainable and expanding gross and operating profit margins, low or no debt, and robust and growing competitive positions. This allows our businesses to reinvest excess cash back into the core business at attractive rates of return to deliver compound growth. We believe this is the holy grail of investing. Furthermore, we like management to have been in the business or sector for at least 10 years as this can create powerful outcomes in terms of capital allocation, staff retention levels and importantly the successful navigation of uncertain economic environments. Time invested in the market in high quality businesses, coupled with attractive economics, has the potential to be very rewarding for long-term minded, patient shareholders.
Emphasis on total return (TR) via blend of capital and dividend growth
Focus on quality companies with high returns on capital and strong cash flows
High conviction, low turnover – ‘buy and manage’ approach
30 – 40 holdings
Investing across the market cap universe
Preservation of capital is paramount over the business cycle
Predominantly UK and up to 20% Overseas from a listing perspective
The fund may appeal to investors who:
Plan to hold their investment for the long-term
Are prepared to accept the risks associated with the volatile nature of equity related investments
Want total return through a blend of capital and income growth
Benchmark CBOE UK All Companies
IA Sector UK All Companies
Launch Date 14 May 2018
Prospective yield 2.2%
Div ex dates 1/5 & 1/11
Div pay dates 30/6 & 31/12
What do I do if I am interested in your service?
Kevin Mordrick will be glad to speak to professional investors who are interested in learning more about the fund before they make their first investment. He can be contacted on 0207 448 4752.
Other investors can buy Ocean Equity shares from Waystone, using the link in the How to Invest section of this page.
The Fund aims to achieve capital and income growth, and to provide a return (after fees, charges and other expenses payable out of the Fund) in excess of that of the CBOE UK All Companies Total Return Index over the long-term.
Ocean Equity was launched in 2018 and has achieved a double AA rating from Citywire, a 5 Crown rating from Trustnet and 5 Star ratings from both Morningstar and Lipper.
How to invest
Ocean Equity is available as an OEIC and is also suitable to include in stocks and shares ISAs and SIPPs.