Vermeer Global Fund
Vermeer Global UCITS ICAV Fund was launched in late 2016. It is a long only fund and uses no hedges or derivatives.
The fund is a concentrated focussed portfolio of between 30 to 60 mostly high-quality companies with the business models and flexibility to excel in the challenging economic environment the world faces.
Since launch the number of positions in the fund has never has less than 54 and is often at a maximum of 60.
Cash is used as a tactical asset and there have been two periods where cash positions were allowed to build up. Most recently in January 2020 when Vermeer took a more cautious view of the nascent CV 19 pandemic.
A cash position of 15% protected investors from some of the downside and enabled investment into the digitisation theme in late March and early April when markets recovered strongly.
The fund is not thematic but represents equity investments matching our macroeconomic views and there are discernible tends that emerge.
Vermeer quickly recognised the acceleration of digitisation of businesses, and all aspects of modern life, caused by CV19 and have altered the balance of the portfolio to capture this trend.
Companies which can capitalise on the digitisation trend in sectors such as healthcare, lifestyle, robotics, and clean energy are currently attracting our attention.
Inevitably we make investment mistakes, and a core of our strategy is to recognise our mistakes promptly and apply strong sell disciplines. Our portfolio is under constant review and there are no sacred cows.
Our point of differentiation from our peers in the global funds space is our ability to find mid cap companies, with a market capitalisation, loosely of between $2bn to $50bn, which exhibit strong cash flows, powerful market position and a deep moat to prevent or mitigate competitive pressures.
The fund has a growth bias, but Vermeer adopts a balanced pragmatic approach to investment. The fund is cognisant of dividends and yield. Since launch the fund has yielded around 1% and produced 18% growth in dividends. This is caveated by 2020 when many companies passed dividends.
Vermeer intends to create long term capital growth in both capital and income and will seek to preserve capital as a high priority.
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Acting as Facilities AgentVermeer UCITS ICAV is recognised for distribution in the United Kingdom by the Financial Conduct Authority under Section 264 of the Financial Services and Markets Act, 2000 of the United Kingdom. Most or all of the protection provided by the United Kingdom regulatory structure will not apply. The rights of Shareholders may not be protected by the Financial Services Compensation Scheme established in the United Kingdom. In connection with Vermeer UCITS ICAV recognition under section 264 of the FSMA, it maintains the facilities required of a recognised scheme by the rules contained in the Financial Conduct Authority’s Collective Investment Schemes Sourcebook at the offices of Vermeer Investment Management Limited, 1 Duchess Street, 5th Floor, London W1W 6AN. Such facilities enable, among other things (during normal business hours):
- a Shareholder to redeem his Shares and to obtain the payment of the price on redemption;
- information to be obtained orally and in writing about Vermeer UCITS ICAV’s most recently published Share prices;
- any person who has a complaint to make about the operation of the fund to submit his complaint in writing for transmission to Vermeer UCITS ICAV; and
- the inspection (free of charge) and the obtaining (free of charge in the case of (iii) and (iv) below, and otherwise at no more than reasonable charge) copies in English of:
- the instrument constituting Vermeer UCITS ICAV;
- any instrument amending the instrument constituting Vermeer UCITS ICAV;
- the latest prospectus;
- the latest Key Investor Information Document; and
- the latest annual and half-yearly reports.