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September 2022
Important Information:
This webinar contains information specifically intended for institutional clients, asset consultants, advisers, platforms and researchers, who are professional investors and wholesale clients (as defined in the Corporations Act 2001).
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Bell Global Emerging Companies Fund is a standout option among active managers within the equity world mid-small Morningstar Category. The strategy defines its universe as the bottom 28% of the MSCI World Index, giving it the flexibility to own companies in a broader market-cap range than typical peers. Companies must be at least USD 1 billion in size for portfolio inclusion, but the average market cap as of 28 February 2022, was AUD 19.587 billion compared with the category average of AUD 9.663 billion.
The strategy is effectively a subset of the flagship Bell Global Equities, which is an all-cap mandate. Bell has strict quality thresholds that require companies to deliver at least 15% return on equity. Companies that fail to achieve this over three years are weeded out. ESG exclusions for tobacco and controversial weapons, and reduced exposures linked to revenue thresholds for fossil fuels, uranium, cluster munitions, gambling, and pornography occur at this point also, after which the team fundamentally assesses management quality and governance. They also consider fundamental factors and aim to provide a portfolio with better-than-benchmark ESG attributes and lower-than-benchmark carbon intensity. Only around 150 names meet the manager’s strict criteria, and from that a moderately concentrated portfolio of 35-55 stocks are selected on the basis of attractive relative valuation and diversification. There are some consistent portfolio biases: healthcare, technology, and consumer names are favoured; financials, energy, and utilities are not.
Portfolio managers Ned Bell and Adrian Martuccio have a long and successful track record managing global equities for institutional investors. Bell launched its flagship all-cap global strategy in 2003 and was joined by Martuccio in 2007. Over time they have built up a team of experienced analysts with a strong performance-driven culture. Bell Asset Management is a profitable boutique that is majority staff-owned, while the founding Bell Group Holdings maintains around a 40% interest. This promotes team alignment and stability. Overall, Bell Global Emerging Companies fund is an excellent option for global small- and mid-caps equities exposure.
Annika Bradley is Morningstar Australasia's Director of Manager Research Ratings. Ned Bell and Adrian Martuccio are Portfolio Managers at Bell Asset Management. This information is not advice or a recommendation in relation to purchasing or selling any assets. It does not take into account individual investment objectives or needs.
Bell Global Emerging Companies Fund is a standout option among active managers within the equity world mid-small Morningstar Category. The strategy defines its universe as the bottom 28% of the MSCI World Index, giving it the flexibility to own companies in a broader market-cap range than typical peers. Companies must be at least USD 1 billion in size for portfolio inclusion, but the average market cap as of 28 February 2022, was AUD 19.587 billion compared with the category average of AUD 9.663 billion.
The strategy is effectively a subset of the flagship Bell Global Equities, which is an all-cap mandate. Bell has strict quality thresholds that require companies to deliver at least 15% return on equity. Companies that fail to achieve this over three years are weeded out. ESG exclusions for tobacco and controversial weapons, and reduced exposures linked to revenue thresholds for fossil fuels, uranium, cluster munitions, gambling, and pornography occur at this point also, after which the team fundamentally assesses management quality and governance. They also consider fundamental factors and aim to provide a portfolio with better-than-benchmark ESG attributes and lower-than-benchmark carbon intensity. Only around 150 names meet the manager’s strict criteria, and from that a moderately concentrated portfolio of 35-55 stocks are selected on the basis of attractive relative valuation and diversification. There are some consistent portfolio biases: healthcare, technology, and consumer names are favoured; financials, energy, and utilities are not.
Portfolio managers Ned Bell and Adrian Martuccio have a long and successful track record managing global equities for institutional investors. Bell launched its flagship all-cap global strategy in 2003 and was joined by Martuccio in 2007. Over time they have built up a team of experienced analysts with a strong performance-driven culture. Bell Asset Management is a profitable boutique that is majority staff-owned, while the founding Bell Group Holdings maintains around a 40% interest. This promotes team alignment and stability. Overall, Bell Global Emerging Companies fund is an excellent option for global small- and mid-caps equities exposure.
Annika Bradley is Morningstar Australasia's Director of Manager Research Ratings. Ned Bell and Adrian Martuccio are Portfolio Managers at Bell Asset Management. This information is not advice or a recommendation in relation to purchasing or selling any assets. It does not take into account individual investment objectives or needs.
