This thematic fund focuses on opportunities created by the expansion of the global middle class population. It aims to achieve capital and income growth over the long term, by investing in around 150 equity positions across global markets.
Your capital is at risk and you may not get back the full amount you invested. Investments in this fund are for the long term and higher risk compared to investments solely in larger, more established companies. Please read full details of the risks here.
What do I need to know before investing?
Where and how is my money invested?
The fund follows a consistent but evolving and logical investment theme. The manager, Anthony Eaton, has applied the same philosophy and principles over the last 15 years. His investment process is focused on producing compounding returns, with a view to generating growth over the long term.
Our belief is that trends determine events. The overarching trend for the foreseeable future is the expansion of the global middle-class population, which is projected to rise from 3.3 billion today to 5.3 billion* by 2030 (i.e. by 200 million each year). During this decade, global middle-class spend is projected to increase by around 80%.** The fund looks to take advantage of the consequences of such a dramatic rise in global demand.
By 2030, around 75% of the global middle-class population is likely to live in Asia. Our investment strategy is, to a large extent, to invest in businesses, regardless of their location, who service the needs and aspirations of this population. As such, the fund is not restricted by geography or index categorisation.
* Brookings, 28 February 2017.
** Global Economy & Development, Brookings February 2017.
What's the investment process?
Our typical investment process is laid out below:
We believe markets in our investment universe are broadly efficient and therefore asset allocation is the key element. Our investment process is focused on identifying the sectors that sit within our chosen themes and constructing a diversified portfolio within those sectors.
This a thematic fund, although the identification of themes does not in itself lead to successful investment and the evolution of pricing power of underlying companies within the theme must be followed.
Success lies in identifying broad themes and the companies that take advantage of those themes. This leads us to select appropriate baskets of investments within our chosen themes, rather than picking individual stocks.
We screen the highest quality companies across the globe. Initially, we look at favourable pricing patterns and technical indicators. Then we assess investments through bottom-up analysis, using our list of preferred metrics to determine whether we invest.
Stock analysis includes: established winners, strong margins, geographically diversified earnings, demand and governance.
What are the risks?
Our investment funds are not suitable for everyone, so we recommend seeking financial advice. This fund may not be appropriate if you plan to withdraw your money within five years. As with all investments, there are risks you should be aware of and are comfortable with before you invest.
- The value of your portfolio can go down as well as up so your capital is at risk and there is no guarantee you will get your investment amount back.
- Investing overseas can bring additional returns and spread risk to different markets. There are risks, however, that changes in currency exchange rates may cause the value of your investment to go up and down.
- Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. This means your money is at greater risk.
- In difficult market conditions, the value of some investments may be less predictable than normal and the fund may not be able to buy and sell these investments at the best time or at a fair price.
- The level of targeted income is not guaranteed and may not be achieved.
- The past performance of our fund is not a reliable indicator of future results.
Please note that this is only a brief overview of the risks involved with investing in the VT Downing Global Investors Fund. Please read full details of all the risks here before investing.
What are the charges?
The charges you pay go towards the costs of running the fund, including the costs of marketing and distribution. These charges reduce the potential growth of your investment.
- Entry charge: No initial charge
- Annual management charge:
Class A - 0.75% per annum
Class F - 0.60% per annum
The above percentages are based on the net asset value of the sub-fund attributable to the relevant class (plus VAT if applicable).
Note that ongoing charges are capped at 1.00% per annum
Class F shares are only available to those who invest at launch of the fund.
For more information please refer to the prospectus.
Who is the team behind the VT Downing Global Investors Fund?
The fund is managed by Anthony Eaton, who began his career in 1984 at Laurie Milbank before moving to Hoare Govett as a private client fund manager in 1987. Anthony then moved to Greig Middleton in 1991, being appointed a director in 1996. He joined JM Finn & Co in 2001, initially as a private client fund manager. In 2005, he became the lead manager of the CF JM Finn Global Opportunities Fund, which was subsequently sold in 2019.
He is supported by the Downing Fund Managers team, which was established in 2010 by award-winning* fund manager Judith MacKenzie. Judith heads up the ten-strong team who manage over £184 million in publicly listed assets (as at 29 February 2020). The investment team have many years’ experience across both private and public equity markets.
Downing Fund Managers is a boutique asset management business, drawing on Downing LLP's 25-year venture capital track record.
Our investment committee draws on a significant number of years investment experience to provide risk oversight on new investments and portfolio management.
*Named Small Cap Fund Manager of the Year, Small Cap Awards 2015 and Small Cap Awards 2013 for the Downing UK Micro-Cap Growth Fund.