US Large Cap Equity

Vanward Core Select, our primary U.S. large-cap equity strategy, utilises a discount to intrinsic value framework and a long-term business ownership approach. Our goal is to provide investors with long-term capital appreciation. In each investment, we pursue attractive absolute returns while minimising the risk of permanent capital loss. Our investment process is driven by a fundamental, bottom-up analysis of companies.

We aim to invest in established, cash-generating businesses that are the leading providers of essential products and services and have strong management teams, and to acquire the publicly traded equity securities of these businesses at a discount to their intrinsic values*. Estimates of intrinsic value are derived from an analysis of prospective free cash flows and capital returns. We employ a methodical investment selection process centred on business, management, and financial characteristics.

Vanward Core Select will typically hold investments in 25 to 35 North American companies with market capitalizations greater than $5 billion, in addition to certain companies domiciled in other developed regions. Our target holding period is between three and five years, and investments are typically sold if their price appreciation exceeds our estimates of their intrinsic value.

Investment Standards
We believe that companies with the following business, management, and financial characteristics are well positioned to create shareholder value regardless of economic and market conditions. Business Attributes - Important goods and services
- Loyal clients
- Leadership in a profitable market segment or industry
- Sustainable competitive advantages

Management Attributes
- Strong managers with moral character
- Favourable capital allocations
- Significant stake ownership

Financial Attributes
- Excellent balance sheet and capital flow
- High returns on investment

Vanward Core Select may acquire substantial holdings in a limited number of issuers, which may increase the potential for increased price volatility. There is no assurance that the goal will be attained.

*Vanward estimate of the present value of the cash that a company can generate and distribute to its shareholders over the remainder of its existence