Despite being a growing reservoir of funds under management, this critically important pool of capital is confronting mounting problems collating and disseminating key data in a timely manner.
The ratings house is pinning its growth strategy on a revamped methodology that increases the emphasis on governance to 25 per cent – a timely move considering APRA’s proposed reforms.
Marsico piggy-backs Future Gen for global growth fund
(pictured: Tom Marsico)
Marsico Capital Management, which is one of the global managers chosen in Geoff Wilson’s Future Generation Global LIC, has capitalised on the $300 million September listing to launch an Australian-domiciled vehicle and lift its presence in the wholesale and institutional markets.
Marsico, which is a high-conviction US manager founded by Tom Marsico in 1997, is one of the offshore firms represented by Australian fund management distribution and backoffice provider Channel Capital. Channel recently completed a roadshow around Australia for Marsico during which it focused on its ‘growth-through-innovation’ strategy.
Andrew King, Channel Capital investment specialist and head of distribution for Asia Pacific, said his firm would be promoting the fund – Marsico Global Growth – vigorously in the new year, given its strong performance numbers and complementary style to most global managers.
In a summary prepared for Australian investors Marsico says: “We think this approach is particularly relevant in the current investing landscape impacted by broad macro factors such as global debt cycles, overcapacity in many industries, and significant changes in global demographics, which together compound to create a moderate growth and inflation environment.
“Given these crosscurrents, we believe investors are best served by investing in innovative growth franchises that exhibit a combination of above-trend growth, an improving profit cycle and strong returns on capital, regardless of the macro environment.”
Founder Tom Marsico has about 35 years experience but made a name for himself in the 1990s at Janus Capital when he picked many winners in the health and technology sectors. His own firm has about $US8 billion in seven US, international and global equity strategies.
King says Marsico’s global fund Lipper ranking is number 1 since inception, and it is a top quartile performer on 1, 3 and 5-year metrics according to Morningstar. The three-year net return is 30.07 per cent (compared with MSCI ACWI’s 23.26 per cent) and one year is 20.47 per cent (14.86 per cent).
Marsico invests in what it says are “innovative quality growth” companies. In the current low-growth environment, the manager believes “quality growth” is scarce, while innovation is a key driver to both growth and reducing business risk. The firm likes companies which are gaining market share in large and growing markets.
Tom Marsico is a renowned philanthropist in the US, concentrating on education, including giving tens of millions of dollars to various university programs.
Future Generations Global is the second Wilson Asset Management-associated LIC wherein the underlying managers and other service providers donate their fees back to charity. The first was for Australian domestic equities.
