New Product: FP CRUX European Fund
CRUX Asset Management has launched the FP CRUX European Fund. The new fund will be co-managed by Richard Pease and James Milne, supported by analyst Roland Grender and will target long term capital growth.
The fund will invest in a concentrated portfolio of primarily large cap European stocks, focusing on businesses that are best of breed on a global level, putting an emphasis on where their sales are generated rather than on their country of origin.
The fund managers have said that where they identify specific investment themes and opportunities which are not available in Europe, the fund will have the flexibility to be invested up to 10% in non-European listed global stocks. It may also take unconstrained exposure to the Swiss market and allocate up to 5% in the UK.
Pease (pictured) said the maangers believe that Europe continues to be home to attractive investment propositions and they will use the same investment approach as the mid-cap biased £1bn CRUX European Special Situations Fund, focusing on four key criteria for stock selection:
• Companies that are not highly capital intensive but generate good cash-flow that is either invested in the business, put to work in corporate actions such as M&A or returned to shareholders as dividends;
• Companies with high barriers to entry and strong pricing power, enabling them to produce robust earnings with good growth potential;
• Businesses whose management have proven track records as well as meaningful stakes in the companies they run;
• Companies that have relatively conservative valuations versus their peer group.
The fund will offer an income share class for those investors requiring a level of income, although this will not be the principal objective of the fund. The managers said they anticipate the fund will yield approximately 2.5%-3.5%.
The FP CRUX European Fund Class I GBP Shares has a minumum investment of £1,000, subsequent minimum of £500 and a current periodic charge of 0.75%.
The Euro Shares version has a minumum investment of €5,000, no subsequent minimum and a current periodic charge of 0.75%.
CRUX is an employee-owned investment management business.
Visit the CRUX Asset Management website