Wells Fargo Asset Management has launched the small cap innovation fund and the global small cap equity fund, further expanding its UCITS funds offering. Concentrated on identifying companies that foster disruption in the markets, the fund typically holds securities in companies with a competitive advantage. At least two-thirds of the portfolio is based in the United States, with up to 15 percent invested opportunistically in global non-US small cap equities.
The small cap innovation fund aims to invest in companies that are pursuing long-term compounding returns and benefits from changes in demographic, lifestyle, or environmental trends. The fund is managed by Michael Smith, senior portfolio manager, and Christopher Warner, portfolio manager, at Wells Capital Management Incorporated’s fundamental growth equity team.
The global small cap equity fund seeks to invest in companies that are well-managed and have financial flexibility that will allow a company to control their destiny via accretive capital deployment. The portfolio predominantly consists of global small-cap companies within the S&P developed small cap Index market, and can hold up to 10 percent in companies that operate within the MSCI Emerging Markets Index.
The global small cap equity fund focuses on building portfolios that take advantage of investment opportunities presented by short-term price anomalies in high-quality stocks. Using an analysis of income and financial statements, the team focuses on balance sheets and free cash flow to find advantages in long-term, above-peer performance with below-peer risk.
The global small cap equities fund is managed by Wells Capital Management Inc.’s special global equity team, which includes Jim Tringas, senior portfolio manager; Bryant VanCronkhite, senior portfolio manager; Oleg Makhorine, associate portfolio manager; Stephen Giggie, co-portfolio manager; and Brian Martin, co-portfolio manager.
The UCITS Funds vehicles are registered across Europe in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Norway, Portugal, The Netherlands, Spain, Sweden, Switzerland, and the United Kingdom. In Asia they will be registered in Singapore, Hong Kong, and South Korea.
“We are delighted to be able to offer two of our proven small cap equity strategies in fund format for our clients in Europe and Asia,” said Deirdre Flood, head of the international client group at WFAM. “These portfolio teams have demonstrated an ability to identify compelling investment opportunities down the market cap spectrum, where disciplined fundamental research allows them to find the winners of tomorrow that are on the right side of change.”
The announcement follows the addition of the Global Equity Enhanced Income Fund to the Wells Fargo (Lux) Worldwide Fund in July 2020.