To provide investors with a single core equity fund that seeks to deliver long-term capital appreciation through a globally diversified equity portfolio. The Fund will allocate across: geographies, currencies, asset classes, investment styles, market sectors and company capitalizations. Through experienced stock selection and advanced risk management techniques, our multi-asset global expertise can provide investors with broad equity exposure. The Global MultiCap (GMC) Fund strives to provide investment returns which are consistently superior to indexing and which deliver long-term core equity growth potential.
Our investment process is focused in three key areas: Security Selection, Asset Allocation, and Risk Management. Given the breadth of investment opportunities available across the globe in every capitalization range, managers investing globally must have the resources to successfully navigate the complexities and the discipline to add value for investors. We believe that our competitive advantage lies with a combination of independent and highly skilled investment teams working in tandem with an experienced asset allocation team that manages the fund. The Portfolio Manager aims to harness the best elements of each investment discipline and capitalize on value added allocation opportunities over time.
Key elements of our process include:
Our investment teams are highly skilled and experienced in their respective asset classes. They employ diverse approaches to adding value through stock selection. Each team conducts its own independent research, selects securities and constructs portfolios in a manner they believe will enhance return and mitigate risk for their specific asset class over time. Each team is reviewed and evaluated by institutional investors and investment consultants from around the world in addition to LMCG’s own internal compliance and investment review committee. The asset classes where LMCG employs active stock selection strategies include:
- Emerging Markets
- International Small Cap
- International Large Cap
- US Small and Mid Cap Growth
- US Small and Mid Cap Value
- US Large Cap Growth.
Asset allocation decisions are handled by the lead Portfolio Manager of the Fund, along with his asset allocation team. These decisions include how to weight investments across asset classes, as well as when to utilize passive strategies in lieu of active managers. By having multiple teams in a single firm, the Portfolio Manager is able to gain far greater insights into each teams’ perspective, investment process, current and planned holdings, and conviction levels. Our active approaches are continuously evaluated and allocations adjusted based upon alpha generating cycles and risk characteristics. Passive approaches are employed where active approaches are not available or where we believe passive approaches will likely provide the best chance of producing absolute returns.
The fund’s asset allocation process is driven primarily from a bottom-up value based equity allocation philosophy. Sub-asset classes of the global equity universe are evaluated by a combination of the valuation and growth expectations of individual stocks that comprise the asset class. The team believes it can add value through asset allocation by establishing a long term fair value of the sub-asset classes and by making prudent buy and sell decisions based upon significant deviations from that fair value. External research, as well as insights and activities of the participating investment teams, may also prove informative for the asset allocation team in its decision making process.
Capitalization weightings of global equity market benchmarks frequently create concentrations of risk that are highly undesirable over near and intermediate time horizons. Such risks must be managed actively, including active allocation of exposures to global equity asset classes. Assessing the relative strength and weakness of global indices helps the allocation team make decisions about investing into and away from certain exposures.
The Portfolio Manager utilizes both proprietary and commercial risk tools in the ongoing management of the fund. These tools help us to increase our opportunities to capture the excess returns of the underlying active stock selection strategies and stay within a desirable risk budget as we alter asset allocation over time. We also scrutinize our sources of return very carefully so that the returns are coming from the intended allocations. We anticipate that half of our excess return will come from stock selection and half will come from asset allocation over a longer time horizon.
Market Events Risk. Turbulence in the financial markets and reduced liquidity in equity, credit and fixed-income markets may negatively affect issuers, which could adversely affect the Fund.
Equity Risk. The Fund’s equity holdings may decline in value because of changes in price of a particular holding or a broad stock market decline.
Foreign Investments Risk. Foreign investments may be subject to the same risks as domestic investments and to additional risks which include international trade, currency, political, regulatory and diplomatic risks, which may affect their value.
There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential loss of principal.
Investors should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. The prospectus contains this and other information about the Fund. You may obtain a prospectus by calling (877) 591-4667. The prospectus should be read carefully before investing.
Foreside Fund Services, LLC.