Overview
Our equity investment approach for market concentration and active manager underperformance.
Our equity investment philosophy
Key is owning more of the high conviction ideas
Our investment philosophy is grounded in the belief that, whilst most active managers underperform net of fees, genuinely skilled managers, who excel in company analysis and stock selection, do exist and can generate alpha beyond their fees. Further, we can identify these skilled managers through rigorous research and due diligence.
We employ high active share and concentrated portfolios to maximise the impact of manager skill on returns. This approach is supported by academic research and our own empirical work. We also seek to exploit the full opportunity set across global equities to provide the greatest freedom to uncover the best investment opportunities. To mitigate investment risks and adverse manager selection, we employ multiple managers to bring diversity and resilience to the portfolio and diversify factor risks such as style, sector, and region. At WTW, we prioritise delivering value for money to our clients by leveraging our scale to reduce costs and using our relationships with managers to create bespoke, cost-effective products.
Differentiated approach
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High conviction
GEFF aims to provide investors with access to concentrated global equity portfolios that are highly differentiated from the benchmark. The underlying 10 to 20 stock portfolios only contain investments in which the managers have the highest conviction.
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Low fees
We are able to negotiate competitive fees due to our brand and scale from pooling our high quality investor base.
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Risk control
In isolation the returns from one of these concentrated portfolios can be volatile. We aim to control the volatility by selecting managers that have complementary approaches. We manage risks at the total fund level to ensure that it is relatively style, sector and country neutral. This seeks to support stock selection primarily driving returns.
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Sustainability
We integrate sustainable investing considerations within our processes, including manager research, manager selection, portfolio construction through our net zero commitment, and monitoring.
Investment objective
This fund seeks to outperform developed equity markets over the medium to long term across a wide range of market conditions.
| Expected return | MSCI World Index + 2% p.a. (net of fees) over the long term |
|---|---|
| Expected tracking error | Typically 2% - 4% p.a. |
Fund facts
| Base currency | USD |
|---|---|
| Fund inception date | 17 August 2015 |
| Subscriptions | Daily |
| Subscription timings | Initial documentation to be received at least 10 business days in Ireland prior to subscription date |
| Minimum initial subscription | USD 15 million |
| Redemptions | Daily |
| Redemption timings | 1 business day notice in Ireland. Cash paid by T+3 |
| Regulator | Central Bank of Ireland |
| Legal form | Qualifying Investor Alternative Investment Fund |
| Structure | Common Contractual Fund |
| Manager | Carne Global Fund Managers (Ireland) Limited |
| Investment Manager | Towers Watson Investment Management Limited |
| Administrator | Northern Trust International Administration Services (Ireland) Limited |
| Depository | Northern Trust Fiduciary Services (Ireland) Limited |
Disclaimer
Please note that :
The value of all investments and the income from them can go down as well as up. This means you could get back less than you invested.
Past performance and simulated past performance are not reliable indicators of future returns.
Changes in exchange rates may cause the value of investments to decrease or increase.
Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.
The securities and derivatives investment activities which the funds engage in, may be speculative and involve a substantial risk of loss.
Units or shares in the funds described herein may become illiquid and investors may redeem their investments only as stated in the funds’ prospectuses.
Key risk warnings
- This document is based on information available to Willis Towers Watson at the date of issue, and takes no account of subsequent developments.
- Towers Watson Investment Management Limited has approved this document for issue to recipients categorised as Professional Clients only.
- This material is intended for investors with long-term investment time horizons.
- The value of all investments and the income from them can go down as well as up. This means you could get back less than you invested.
- Changes in exchange rates may cause the value of investments to decrease or increase.
- Past performance does not predict future returns.
- The document contains figures that refer to simulated past performance, which does not predict future returns.
- Expected performance does not predict future returns.
- Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.
- The securities and derivatives investment activities which the Fund engages in may be speculative and involve a substantial risk of loss.
- The fund may be exposed to credit and/or default risk of issuers of debt securities that may be held within the fund.
- The issuers of any bonds within the fund may default or not be able to pay the bond income as expected.
- If the fund is denominated in a currency other than your home currency, movements in exchange rates may, if not hedged, have a significant impact on the value of (and income from) your investment.
- Shares/units in the fund may become illiquid and investors may redeem their investments only as stated in the fund’s prospectus.
