A best ideas portfolio of global companies
Global equities can offer investors exposure to the world’s leading economies and companies. For patient investors, global equities offer a compelling investment opportunity for capital growth and an important diversifier to portfolios. Designed to be a core international equities holding, the Warakirri Ethical Global Equities Fund offers investors a diverse portfolio of 20-40 high quality global stocks that have a structural and sustainable competitive advantage. The Fund is managed by our specialist investment partner, Northcape Capital, who are a dedicated, well established, highly skilled and passionate team that has successfully been managing equities since 2004. The Global Equities team have the principles of ethical investment at the forefront of their approach with ESG considerations incorporated into their investment decision making process. Warakirri applies its own unique Ethical Overlay screen, integrating positive (ESG) and negative exclusion components.
Investment Objective
A best ideas portfolio of around 20 – 40 global companies, designed to be a core international equity holding.
Seeking companies that exhibit quality characteristics such as sustainable growth, strong profitability, defendable market position, and strong balance sheets.
Ethical overlay incorporating both positive and negative components applied with a focus on sustainable businesses that exhibit sound Environmental, Social & Governance practices.
Ethical Investing – Our Approach
Warakirri applies a proprietary ethical screen for this Fund, incorporating both positive and negative components.
Positive Overlay
The positive overlay component incorporates a focus on investment in sustainable businesses that exhibit sound environmental, social and governance practices.
Negative Overlay
The negative overlay excludes investment in companies that Warakirri considers have significant businesses, that is, revenue of greater than 5% from the audited financial statements of a company, involved in the:
- provision of gaming products and/or services
- manufacture of tobacco products
- manufacture of alcoholic beverages
- manufacture of products for military applications
- manufacture of products that could contribute to increased levels of obesity
- extraction of thermal coal and/or coal seam gas
Warakirri is ultimately responsible for the application and implementation of the Warakirri Ethical Overlay in consultation with the fund’s underlying investment manager Northcape Capital.
In addition to the application of Warakirri’s proprietary ethical screen, Northcape Capital also incorporate ESG considerations into their investment decision making process. There may be instances where Warakirri elect to exclude a company from the portfolio on ethical grounds, despite that company having passed Northcape’s ESG process.
Northcape’s investment procedures are designed to incorporate ESG issues into their investment analysis and decision-making processes. In particular, ESG factors are used to assess if a company is suitable for inclusion on Northcape’s approved list of companies for investment. Northcape’s ESG test is applied based on a scoring system as follows:
- Environmental practices (3 points total)
- Social practices (3 points total)
- Governance (4 points total).
A company needs to pass Northcape’s ESG test which requires achieving a score of at least 6 out of 10 in relation to the above scoring system before being considered for inclusion on Northcape’s approved list of companies for investment.
More detailed information on Northcape’s ESG test and scoring system is available here.
You can view Northcape’s latest ESG & Investment Stewardship Report here.
Fund Facts
| Benchmark | MSCI World Total Return Index with Net Dividends in AUD |
| Stock Range | 20 – 40 |
| Individual Stock Weight | 0-10% |
| Inception Date | 1 November 2016 |
| Fund Size | $28m |
| Distribution Frequency | Semi-Annual |
| Currency | Unhedged |
| APIR Code | WRA5182AU |
| ARSN | 642 393 799 |
Performance, Prices & Distributions
Net returns as at 30 June 2024
| 1 month % | 3 months % | FYTD % | 1 year % | 3 years % pa | 5 years % pa | 10 years % pa | Since inception (01/11/2016) % pa | |
|---|---|---|---|---|---|---|---|---|
| Fund | +1.59 | +0.23 | +13.30 | +13.30 | +5.38 | +7.49 | - | +10.55 |
| Benchmark | +1.61 | +0.26 | +19.80 | +19.80 | +11.11 | +12.79 | - | +13.63 |
| Relative Return | -0.02 | -0.03 | -6.50 | -6.50 | -5.73 | -5.30 | - | -3.08 |
Past performance is not a reliable indicator of future performance. The return of capital is not guaranteed.
Northcape Capital was appointed the underlying investment manager effective 1 May 2020.
|
Current Unit Price |
Month-end Unit Price |
|
|---|---|---|
| Application | $1.223 | $1.2208 |
| Redemption | $1.2182 | $1.2160 |
| Distribution Rate | Reinvestment Price | |
|---|---|---|
| 30 June 2024 | $0.15229328 | $1.2184 |
| 31 December 2023 | $0.00551854 | $1.2307 |
| 30 June 2023 | $0.01694415 | $1.2152 |
| 31 December 2022 | $0.00129009 | $1.1211 |
| 30 June 2022 | $0.01798039 | $1.0873 |
| 31 December 2021 | $0.00283022 | $1.3520 |
| 30 June 2021 | $0.04552057 | $1.2164 |
| 31 December 2020 | $0.00 | N/A |
| 30 June 2020 | $0.4636 | $1.0699 |
Portfolio Holdings
As at 30 June 2024
| Company Name | Sector | Country | Weighting |
|---|---|---|---|
| Nvidia | Information Technology | United States | 7.9% |
| New Informa | Communication Services | United Kingdom | 6.4% |
| Alphabet A | Communication Services | United States | 6.1% |
| Visa A | Financials | United States | 4.9% |
| Microsoft Corp | Information Technology | United States | 4.9% |
| Salesforce | Information Technology | United States | 4.8% |
| Zoetis A | Health Care | United States | 4.7% |
| Intertek Group | Industrials | United Kingdom | 4.7% |
| Novo Nordisk | Health Care | Denmark | 4.6% |
| Marsh & Mclennan Cos | Financials | United States | 4.3% |
| Total | 53.3% |
Portfolio holdings are subject to change.
As at 30 June 2024
| 22.0% | Information Technology | |
| 17.0% | Healthcare | |
| 16.0% | Financials | |
| 15.0% | Communication Services | |
| 15.0% | Industrials | |
| 5.0% | Consumer Staples | |
| 4.0% | Real Estate | |
| 2.0% | Materials | |
| 2.0% | Consumer Discretionary | |
| 2.0% | Cash | |
As at 30 June 2024
| 70.0% | United States | |
| 11.0% | United Kingdom | |
| 7.0% | Scandinavia | |
| 3.0% | Asia ex-Japan | |
| 3.0% | Europe | |
| 3.0% | Japan | |
| 1.0% | Canada | |
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PLATFORM AVAILABILITY
| Platform |
|---|
| HUB24 |
| Mason Stevens |
| Netwealth |
FAQs
What is the Warakirri Ethical Global Equities Fund (“Fund”)?
The Fund is an actively managed investment fund that provides investors with access to a portfolio of hand-picked global companies diversified by geography, industry, and size of market capitalisation. The Fund aims to achieve long-term capital growth through a disciplined investment process. An Ethical overlay is incorporated with both positive and negative components applied with a focus on sustainable businesses that exhibit sound Environmental, Social & Governance practices.
Why invest in Global Equities?
Investing in the developed markets of global equities can provide investors exposure to some of the world’s leading companies, advanced economies and long term growth potential. Read this paper to learn more about the outlook for global equities.
What is the investment strategy of the Fund?
The Fund utilises an active management approach. The Fund’s investment manager seeks to invest in no more than 40 high quality businesses invested over the long term. The Fund does not set portfolio weightings relative to the composition of the index and country and sector exposures are an outcome of the portfolio construction process.
What benchmark is the Fund measured against?
The Fund’s benchmark is the MSCI World Total Return Index with Net Dividends in AUD. This index tracks the performance of large and mid-cap companies across 23 developed countries, including the reinvestment of all net dividends paid out by those companies
Who is the investment manager?
Northcape Capital is an international boutique fund manager fully owned by its staff. Northcape specialise in managing concentrated high-quality equity portfolios and has delivered significant value-added returns since their establishment in 2004, facilitating growth in funds under management to more than A$10 billion.
Important Legal Information
Past performance is not necessarily indicative of future performance.
This website is maintained by Warakirri Asset Management Limited (ABN 33 057 529 370) (Australian Financial Services Licence Holder No. 246782) and provides general product information only and does not constitute financial advice as it does not take into account an individual’s personal circumstances and is not an offer or solicitation to enter into an agreement. Investors should not rely on the information on this website and should refer to the Fund’s Product Disclosure Statement (PDS), Additional Information Booklet and TMD, and seek independent advice from their financial adviser. A PDS and TMD for the Fund is available on this website or by calling 1300 927 254. The PDS and TMD should be considered before making an investment decision. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested. Portfolio holdings are subject to change.
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