For professional investors only
This document is for professional investors only.
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As always, we start this review with a reminder as to what we are looking to achieve for our clients. We aim to build a diversified portfolio that invests in high-quality companies, which can grow cash flows consistently at valuations that are attractive. This should allow us to deliver long-term risk-adjusted returns for our investors. Evidence shows that, over the long-term, stock market returns are derived from fundamentals and earnings growth and therefore we are looking for companies that can, in our opinion;
- demonstrate an enduring competitive advantage,
- benefit from clear long-term growth trends,
- benefit from superior financial strength, with a strong balance sheet,
- are trading at attractive valuations.
The ability of these companies to grow their earnings and compound their cash flows over 5-10 years should, we believe, allow them to drive better investment returns over the long-term.
We are confident in the positioning of the fund as there are reasonable expectations for earnings growth in many areas of the market which we favour. Whilst we remain bullish in the short-term, we are also mindful of valuations being stretched with many stocks priced-to-perfection and we believe stock selection will become ever-more important over the course of 2025 and beyond. As a team, we constantly challenge ourselves as to whether portfolio holdings continue to meet our investment criteria. In many cases, short-term share price weakness can provide an excellent opportunity to add to holdings we favour and, with the fund in continued inflow throughout the quarter, this provided us with opportunities to put this cash to good use.
For the full review, click here.
Source: Fund performance source: HSBC as at 31/12/24. Comparator benchmark: MSCI World Index.
Important information
For professional investors only. This communication is issued for information purposes only. It does not constitute the provision of financial, investment or other professional advice. To ensure you understand whether a fund is suitable, please read the key investor information document and prospectus. CCLA strongly recommends you seek independent professional advice prior to investing. Past performance is not a reliable indicator of future results. The value of investments and the income derived from them may fall as well as rise. Investors may not get back the amount originally invested and may lose money. Any forward-looking statements are based upon CCLA’s current opinions, expectations and projections. Such opinions, expectations or projections may be subject to change at any time. CCLA undertakes no obligations to update or revise these. Actual results could differ materially from those anticipated. CCLA Investment Management Limited (registered in England & Wales, No. 2183088) whose registered address is One Angel Lane, London, EC4R 3AB is authorised and regulated by the Financial Conduct Authority.
