Shaw and Partners launches the first of EFGAM’s New Capital Funds in Australia and Praemium lowers SMA portfolio administration fees

Shaw and Partners has launched the first of EFG Asset Management’s (EFGAM) New Capital Funds, giving local investors increased access to global equity markets.

From Monday 1^st July 2019, the US Future Leaders strategy will be available to Shaw and Partners clients as a Separately Managed Account (SMA) via Praemium.

EFGAM’s New Capital Funds are a series of high-conviction strategies designed to produce long-term and sustainable alpha opportunities for clients. The goal of the US Future Leaders Strategy is to identify the next Facebook, Apple or Starbucks; discovering companies that are poised to dominate multi-billion dollar markets over the next decade. It is a concentrated US stock model portfolio that is designed to provide direct equity exposure to rapidly-growing businesses with significant opportunity to develop into future mid or large-cap companies, primarily via organic growth.

Shaw and Partners Chief Investment Officer, Martin Crabb said “We are excited to be bringing this strategy to our clients. One of our greatest challenges is helping investors gain exposure to the new and disruptive businesses that are poised to challenge those companies that typically comprise Australian share portfolios, such as banks, supermarkets and telecommunications companies. The EFGAM US Future Leaders strategy is a union of academic research, investment management and security selection that is unique in the market and one that provides an excellent portfolio diversifier for our clients.”

Portfolio construction is rooted in EFG’s fundamentally based investment philosophy and process – with a focus on four primary growth sectors of the economy; technology, healthcare, consumer discretionary, and financial services.

The Future Leaders Panel is comprised of industry and academic experts who help develop a proprietary framework that enables EFGAM to enhance its research process by being able to better identify visionary leaders in company management teams.

Donald Klotter, Global Head of Institutional Sales at EFG International said “At EFG, we believe that great management is a key driver behind successful companies and their ability to continually innovate or disrupt the status quo.”

Measuring successful management is not easily quantifiable or apparent from traditional company analysis – something which EFGAM seeks to accomplish with the panel. “We believe this is a truly unique initiative as the panel’s input is directly linked to the investment process,” he added.

In addition to contributing to the investment research process, the Future Leader’s Panel draws on its combined intellectual capital to provide unique insights for the benefit of EFG/Shaw and Partners’ clients. Accordingly, the US Future Leaders investment solution is positioned as a unique alternative to competitor funds. By focusing on industry chatter, as opposed to Wall Street chatter, EFG’s investment selection process runs counter to the herd mentality of the most fund managers.

Since its inception in April 2016, the US Future Leaders Strategy has returned 23.12% annualised (as at May 2019).

The launch of the sleeve comes off the back of Shaw and Partners’ recent partnership with new parent company, EFG International. In March of this year, Shaw and Partners and EFG International, a global private banking group headquartered in Zurich, Switzerland, announced that they had entered into a long-term strategic partnership, pursuant to which EFG acquired 51% of the issued shares in Shaw and Partners for a total consideration of AUD$61.2m. 

The new EFGAM investment solution is the thirteenth addition to Shaw and Partners’ successful SMA offering and has been earmarked as the “first of a number of international investment solutions” that Shaw and Partners intends on bringing to market over the next 12-18 months.

Donald Klotter, Global Head of Institutional Sales at EFG will roadshow the sleeve nationally, alongside Shaw and Partners CIO, Martin Crabb at the end of July.

In addition to the launch of the new SMA sleeve, Praemium has announced that it will be reducing the ongoing SMA administration fee rates and capping administration fees at $1 million. The reduction will come into effect from 1 August 2019.

For more information: Victoria Macarthur-Stanham, Business Development Manager - 02 9238 1291