Investec Asset Management has launched a new Luxembourg-domiciled fund for its contrarian team headed by Alastair Mundy.
The Investec GSF Global Contrarian Equity fund will be co-managed by Mundy and Mark Wynne-Jones and is a mirror of their existing UK-domiciled £45.4m Investec Global Special Situations fund.
It has a minimum investment of $3,000 (£1,918) and an initial fee of 5% with an annual management charge of 1.5%.
The portfolio will be governed by the same process as the Investec Global Special Situations fund, which avoids long-term macro-trends or themes and uses bottom-up analysis to identify underperforming stocks with a favourable risk/reward ratio.
Wynne-Jones says: “Our contrarian investment process is all about ’doing something different’. We go against the herd to make long-term investments in cheap, out-of-favour companies with appropriate balance sheets.”
The Investec Global Special Situations fund has delivered annualised returns of 6% compared with an IMA sector average return of 0.6%. The contrarian team also oversees the £497.3m Investec UK Special Situations fund, which is managed by Mundy.
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