"Given that our investment horizon is a minimum of three years, we expect to also find investors in Spain with a longer-term vision"
It has two star long-term equity products: Europe, with a mid-cap bias, and global emerging markets.
"We target long-term investors, which usually means they believe in investing in good quality companies and don't get carried away by the short-term volatility of the market."
"Communicating Aubrey's philosophy and culture is an important part of the distribution process"
"European investments used to be considered unattractive, but with the new convergence of growth between Europe, the US and even China, Asian investors realize that the key to being rewarded in Europe is to find good active managers and not through ETFs."
The management boutique Aubrey Capital Management has just landed in Spain, within a more ambitious business expansion plan that is taking it to other countries in Europe and also to Asia. Myra Chan, CFA, Sales Director and member of the Sustainability Committee in the entity, explains in this interview what their projects are in our country, in which they have already registered two flagship products, two long-term equity funds that invest in Europe (with mid-cap bias) and global emerging markets.
What objectives has Aubrey set itself in Spain? We expect to look for like-minded investors, i.e. people looking for the best growth opportunities in the respective regions of global emerging markets and Europe without embracing the index as a benchmark. We have developed some very valuable long-term relationships in other regions, and we hope to do the same in Spain. Since our investment horizon is a minimum of three years, we expect to also find investors with a longer-term view of returns, because that's when the companies in our portfolio start to deliver the best results.
What main strategies does Aubrey bring to the Spanish market? We have two star long-term equity products: Europe, with a mid-cap bias, and global emerging markets. Both are registered with the CNMV in Spain.
Why can these strategies be interesting for Spanish investors? The first reason is profitability, as both have similar volatility to the index, but have been providing around 10% of alpha annually over the past five years. As a boutique house, Aubrey is majority owned by our investment managers, so it's good for investors to know that our interests are aligned. The conviction we have in our stock selections is truly based on the diligence of our team, as our managers have over 30 years of individual experience. There is a lot of intellectual property on our team.
One of the star strategies is European Conviction Equities: what are the keys to its management? The team is very experienced, both Sharon Bentley-Hamlyn and John Ewart individually have over 30 years of experience. The team's approach allows for the free flow of ideas, where younger members bring different perspectives typical of millennials. Although Europe is in a mature phase of economic development, unlike emerging markets, of our universe of more than 3,000 securities, we strive to find the best 1%, approximately, to be part of our portfolio of 35 to 40 securities. Regardless of the economic cycle in which we find ourselves, our high level of demand and our rigorous selection exercise aim to identify the best companies to include in our portfolio. In the last 10 years this has been proven to work.
It is also very important to note that this portfolio has a bias to favor companies that contribute to the good of society. Our analysts and portfolio managers analyze companies simultaneously from a financial and ESG point of view, based on a 29-question questionnaire designed in accordance with the principles of the United Nations Global Compact.
And why have you chosen Spain as a business destination? Do you see growth potential in this market? Why not? Spanish investors and selectors are open-minded and as long as they find high-performing products with ethics and goals aligned with their own, any language barrier can be overcome.
What kind of investors are they targeting: institutional, private banks...? We target long-term investors, which usually means that they believe in investing in good quality companies and that they don't get carried away by the short-term volatility of the market.
How will your distribution work in Spain? Through direct contact with investors and fund selectors. We believe that communicating Aubrey's philosophy and culture is an important part of the distribution process.
Is the arrival in Spain ... part of a plan for greater growth, in Europe or in other parts of the world? Of course. We are now registered in Spain, Switzerland, United Kingdom, Luxembourg and in the process of registration in Germany/Austria. In addition to Europe, we are finding Asian investors very interested in our strategies. European investments used to be considered unattractive, but with the new convergence of growth between Europe, the US and even China, Asian investors realize that the key to being rewarded in Europe is to find good active managers and not through ETFs.