Companies are analysed on a three-year view and use is made of short-term market volatility to exploit the longer-term valuation opportunity. Valuations are constantly reviewed and compared to sector peers and to the market.
Colwell is focused on capital preservation. Although the fund is concentrated at around 60 holdings, its largest investments will be into strong well-diversified businesses. Richard is fairly unconstrained in how he puts the portfolio together.
There are no restrictions on the size of company he can invest in, though he will keep the portfolio predominantly in large caps. any benchmark weights, although the income mandate will affect sector allocations.
The fund has returned 39.4 per cent in the past five years, compared with 28.9 per cent for the sector average. It is first quartile over one, three, five and ten years. It has an historic yield of 3 per cent and ongoing charges of 0.82 per cent.
This fund has a patient high-conviction approach and has proven to be extremely consistent. Colwell's willingness to be contrarian leads us to believe that he can continue to deliver strong performance in a competitive sector.
Darius McDermott is managing director of FundCalibre