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Introducing Redwheel
FOR PROFESSIONAL INVESTORS ONLY
In January this year, RWC Partners announced it was changing its name to Redwheel in a rebrand of the firm’s visual identity as it enters the next phase of its development.
We talk to CEO Tord Stallvik, to look at the five key collective principles which drive the business.
AUM
£324M
Fund size
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Established in the year 2000, Redwheel’s active investment heritage is built on a foundation of innovation, original thought and high conviction.
“A good definition of being truly active is building portfolios from the ground up, without consideration of whether those investments are in an index, or what their weight in an index is,” says Stallvik.
Stallvik says: “Trying to do too many things is always a temptation, but managing high quality active strategies remains our key focus. Each team has been built by portfolio managers who have their own distinct investment philosophies that have been developed over many years in the financial markets.”
In addition to its belief in the benefits of active management to create and deliver long-term value, another key principle for Redwheel is to remain solely focused on managing investments.
Unearthing the hidden gems
He explains the combination of an independent, non-investment chief executive and board, a fully supportive operational platform and a revenue share with investment teams, gives Redwheel a robust platform for sustainable growth and diversification.
Redwheel has more than 150 people, including 54 dedicated investment professionals.
Tord says Redwheel has worked hard to ensure the group has a strongly aligned and supportive shareholder base that shares its values and long-term vision.
Stallvik says: “We believe that the asset management business, when done well and with a focus on long-term alignment, is a force for good.”
Stallvik describes Redwheel as an entrepreneurial and flexible organisation that adopts a high-performance culture.
Fund dividend yield
*Dividend yield based on trailing 12 month distribution divided by the latest NAV. Source: RWC, FactSet (using GICS Sector Classifications via MSCI). All data as at 30th April 2021.
2.0
vs.
INDEX
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Managing $22.9bn* for investors from its offices in London, Miami and Singapore, Redwheel specialises in providing developed and emerging market equities, convertible bonds and income solutions.
“Everything we do is focused towards enabling experienced, accomplished and well-supported fund managers to operate with a high degree of investment autonomy, free from unnecessary restrictions and with a focus on achieving superior long-term investment outcomes,” says Stallvik.
*As at end February 2022
Tord says: “As an inclusive business, we recruit and listen to diverse voices and perspectives. We collaborate with respect and openness and believe our approach drives innovation, agility and resilience.”
Redwheel includes seven independent investment teams.
While all seven investment teams are autonomous, running their own investment processes, Stallvik says they all work together as a team and with other stakeholders, to create sustainable outcomes.
Supported by
analysts
For Stallvik, this simple and strong investment culture is what has attracted new teams to join Redwheel as the group has developed.
Past performance is not a reliable indicator of future results.
Source: Federated Hermes as at June 2020. Performance presented in Euros for the F EUR Acc share class, net of fees and charges. Fund inception: 11 May 2010. Benchmark: ICE BofA Merrill Lynch Global High Yield Constrained EUR Hedged.
Understanding that we all live in this world together, Stallvik says Redwheel is striving to play its part accordingly.
“We believe it’s critical to integrate ESG into your investment process if you are a fundamental active manager,” he says. “We need to understand the risks and opportunities that come from investing in those companies we do and ESG brings in a framework to do this.”
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While this does not mean that every strategy Redwheel offers is classified as sustainable, ESG considerations are taken into consideration by all seven investment teams.
He adds: “We invest for current and future generations and the world in which we live. We make investment decisions that can have an impact decades from now, helping to shape the world in which everyone will live. We make these decisions in a responsible, considered way.”
The views contained herein are not to be taken as advice or recommendation to buy or sell any investment or interest. The value of an investment and the income from it can fall as well as rise, you may not get back the amount originally invested. Past performance should not be seen as a guide to future performance. EdenTree is authorised and regulated by the Financial Conduct Authority and is a member of the Investment Association. Firm Reference Number 527473.
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