The Swiss banking group SYZ & CO has announced today the launch of OYSTER US Selection, a new sub-fund of its OYSTER Luxembourg UCITS SICAV.
The fund is managed by Scout Investments, a star US equities manager based in Kansas City, Missouri.
OYSTER US Selection follows an original approach to US equities, combining a bottom-up analysis with a top-down overlay, aiming to anticipate changes in economic cycles. The fund, which is still restricted to institutional investors only, should be registered shortly in several countries in Europe and Asia, and become available to the general public, like the other OYSTER sub-funds.
Managed by Scout Investments, a Kansas City-based fund manager, OYSTER US Selection is based on Scout’s US strategy, which has vastly outperformed its peer group by ranking in the 1st percentile over the three-year and five-year periods, as well as since its launch on 30.10.2006. Since its inception, Scout’s US strategy has generated a performance of +69.5%, compared to 7.4% for the Lipper Global Equity North America index. Scout is the asset management arm of UMB Financial Corp., a top-ranked diversified financial services company. With 18 years experience, Patrick Dunkerley is the lead portfolio manager for OYSTER US Selection. This winning US equities strategy is exclusively available in UCITS format through OYSTER US Selection.
OYSTER US Selection aims to achieve superior long-term, risk-adjusted returns by investing in attractively valued quality stocks expected to benefit from company-specific or macroeconomic catalysts. OYSTER US Selection’s strategy is style-agnostic. Through the combination of a deep analysis of over 100 economic and sentiment indicators, Scout identifies market cycles and investment themes, as well as risk levels that may impact sector and industry allocation in the portfolio. This top-down view will then determine the valuation methodology used in the bottom-up analysis. The main selection criteria for a company are an ability to generate consistent free cash flow, a 10-year record of strong or improving operating margin and CFROI, long-term earnings power, a strong management and the absence of litigation risk. OYSTER US Selection will typically hold 60-80 positions within its portfolio.
Current investment themes include:
Expanding emerging market consumers leads to increase in demand for energy and luxury goods
Weight-conscious and ageing population creates demand for health and wellness products
Global demand for oil drives exploration and production
“We believe that the US economy is in recovery phase and is also more mature and less volatile than other markets. The US market offers strong opportunities to find undervalued companies with positive dynamics”, says Xavier Guillon (pictured), CEO OYSTER Funds. "We currently see a strong demand for US equities and our new fund, OYSTER US Selection, is well positioned to address investors’ needs. Its investment process has worked consistently in both bull and bear markets. We are delighted that Scout Investment chose OYSTER Funds exclusively to manage their US Equity strategy in a UCITS format.”