Advisers and clients looking for global equities options

With growing interest in global equities from Australian investors, the Equity Trustees Dundas Global Equity Fund is now available for investment on the BT Wrap and Asgard platforms.

The fund, which takes a long-only position in 60 to 70 companies with a minimum market cap of US$1 billion, is managed by Edinburgh-based Dundas Global Investors and distributed in Australia by Equity Trustees Limited.

David Myers, national sales manager at Equity Trustees Funds Distribution, said over the past 12 months there has been a clear increase in the level of interest in global equities, from both financial advisers and their clients.

“As a result, we have arranged with BT Wrap and Asgard to open the Equity Trustees Dundas Global Equities Fund to retail investors to meet this growing demand.

“Advisers we have spoken with have told us they are seeking to position their clients’ portfolios to benefit from growth in markets such as the US and China, as well as ensuring they are not over-exposed to Australian equities in the current economic environment.

“With many investors still focused on income, the Equity Trustees Dundas Global Equity Fund can help create a stable, regular return for investors thanks to its focus on sustainable long-term dividend and book value growth.

“This approach is particularly attractive to investors who want exposure to global equities without taking on a high level of risk,” Mr Myers said.

Mr Alan McFarlane, senior partner and founder at Dundas Global Investors, said that investors in international equities will need to pick and choose carefully in 2014.

“We saw a strong rally in 2013 in developed market equities.

“As a result, equity markets are at valuation levels susceptible to a correction, and investors should ensure they are invested in companies with a strong and sustainable return on equity as well as cash generation and internal re-investments, in order to achieve future dividend and book value growth.

“Although inflation appears to offer little threat to markets, global equities would probably have a nasty reaction to further US rate rises, and this makes it even more important that any investments in global equities are made on the basis of fundamentals, rather than expectations of across-the-board market growth,” Mr McFarlane said.

As well as opening on the BT Wrap and Asgard platforms, the Equity Trustees Dundas Global Equity Fund has recently received a ‘Recommended’ rating from Lonsec*. It has an ‘A’ rating from van Eyk and an ‘Approved’ rating from Zenith**.

Dundas Global Investors was established in Edinburgh in August 2010. Dundas is an independent partnership with their own assets invested alongside clients. Dundas offer a single strategy to investors; global equities to achieve real capital and dividend growth. Dundas has seen significant growth last year, with the strategy receiving another mandate, for $240 million, from a large Australian superannuation fund in December last year, taking total funds under management to over $500 million.

The fund aims to exceed the MSCI All Country World Index (excluding Australia) by 2.5% p.a. over rolling five year periods after fees.