The Church of England investment manager has launched a global equity fund for retail investors at the request of their institutional clients.
CCLA Investment Management, which also manages £7bn of assets for 30,000 charities, has launched the CCLA Better World Global Equity Fund.
The Ucits fund will invest in global equities, on a bottom-up basis of stock selection.
Jasper Berens, head of client relations and distribution at CCLA, said the fund, which has £230m of CoE funds, was launched in response to demand from the firm’s institutional clients, who wanted access CCLA’s investment strategy for their personal account. wallets.
“The performance of the investment team has been very strong,” he said.
“It’s not the least [due to the] cash flow we generate for our not-for-profit organizations [as] they seek not only to make their capital grow, but also to derive the income from this capital to finance their day-to-day operations.
Berens added that the company had deliberated on whether creating a fund for retail investors was the right way to go.
“The feeling was, well, if individuals want to do that, the strength of CCLA as a brand could be considerably broader if we created a capacity not just to serve [those] individual investors, but also a broader market that did not know us.
He said CCLA decided to launch a global equity fund because that’s the core of what it does in its business.
“It is also the heart of most investors, whether they are individuals or intermediaries.
“We recognize this is a competitive market, but we strongly believe that with our authenticity and proven track record, we can compete in this market.”
Investment Manager History
CCLA was started in 1958 as the investment manager of the Church of England and also provides services to charities and local authorities.
It manages £14bn of assets and is independently owned by its clients.
The firm operates under a ‘good investment’ philosophy, which underpins its approach to investing.
As an investment manager, CCLA needs to understand the investment priorities of all of its clients, which Charlotte Ryland, co-manager of the new fund, says can sometimes vary.
“There are many different ways to think about ESG and sustainability…in general, we have a vision of what good ethics is.”
The new fund will be managed by Ryland and James Ayre, CCLA’s co-chief investment officers who have managed the global equity strategy for charity investors since 2016 and 2007 respectively.
Ryland said the fund will not focus on any particular geography or sector, but will look at “quality companies”.
“[We will focus on] businesses that can generate decent cash flow and returns on investment, and [we think] can support them in the future because of a competitive advantage for their business. »
She added that technology is the biggest part of the portfolio, along with healthcare, but any “deeply cyclical” activity is avoided.