Setanta Asset Management
Setanta Asset Management Limited (“Setanta”) is the primary asset manager for Canada Life in Ireland and other European countries. Setanta was established in Dublin in 1998 and has grown steadily since then, now managing approximately C$6 billion* in assets for Great–West Life Group companies with clients in Ireland, Germany and Canada as well other third party institutions. Setanta Asset Management Limited is part of the Great-West Lifeco group.
Investment philosophy
Setanta specializes in active global equity management, investing in stocks on a fundamental basis, with a focus on value and quality. Setanta has an experienced investment team, who choose stocks within a global sector framework. The team has a strong track record in its core global equity fund, and in other regional, country and specialist funds.
Investment process
Setanta’s Portfolio Managers undertake their own independent investment research when analysing a company. To help identify new opportunities screening tools are used within each global sector. Each Portfolio Manager initially screens the relevant sector using valuation and quality filters, which vary according to sector.
The value metrics used include cash flow and asset based metrics e.g. Free Cash Flow Yield, Price to Book Value and Price to Earnings and various gearing metrics.
An emphasis is placed on investing in companies that can demonstrate strong quality financial attributes with particular focus on profitability (ROE, ROA) and cash flow returns (CFROIC) as well as manageable debt (Debt/Equity, Debt/EBITDA, Interest Cover).
Global value investing creates diversification and lower volatility
Setanta manages segregated Great–West Life Group Global Equity funds. These funds by investing across all sectors and on a global basis, offer Canadian investors a great source of diversification. The mix of sectors, currencies and value biased quality stocks contributes towards the objective of consistent out performance. In addition, a globally diversified fund tends to have lower volatility than country or regional indices, the latter may have too strong a concentration in one sector or even in a few stocks.
From Global to regional and specialist funds
Setanta’s Global Equity Fund is the keystone portfolio for other regional, country and specialist funds and many of the stocks in these funds are chosen from the Global Equity Fund. Setanta applies the same rigorous fundamental value investing to European Equity, EAFE and the Dividend segregated funds, the later being a global equity high dividend yield fund. Portfolios are relatively concentrated with typically around 120 stocks in a global equity portfolio and approximately 40 stocks in a regional portfolio. Risk parameters are applied to sector weights and single stock positions.
Management style
Global Equity and regional funds:
- Bottom up value investor
- Quality companies for long term
Global Dividend Fund:
- Bottom up
- Value Investing/High Yield Filter
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