Over the summer months, we have made a number of changes to the Global Leaders portfolio. 3M and Reckitt Benckiser have been sold within the portfolio whilst Nidec, Microsoft and Philips have all been added. We profile the rationale for each below. 3M After many decades of impressive growth, we believe 3M now faces considerable pressure from lower quality substitution, powered by powerful retail and procurement platforms of which Amazon is the most notable player. Secondly, 3M now has proportionately less growth opportunity than any time in its history – by geography and by market segment. Following a period of review, 3M has been sold from the Global Leaders portfolio. 3M is a somewhat unique company. Its corporate DNA is based on product invention and development across very wide product segments, appealing to both household and industry buyers. It has been at the vanguard of US companies pushing into a globalised world. It runs thousands of product lines across four divisions without seeming inchoate: safety & industrial (34% of group sales), transportations & electronics (29%), health care (21%) and consumer (16%). Group sales total US$32bn, meaning that an additional US$1bn is needed to achieve 3% growth. This is a hard [...]
On Wednesday 31st July, we hosted our annual evening of Rounders and BBQ, with six teams joining us to battle it out in Regent’s Park. This year, we were thrilled to be partnering with Greenhouse Sports, a London based charity that uses sports coaching and mentoring to empower young people who are facing disadvantage to help them unlock their full potential. We had a number of the Greenhouse coaches join us on the evening to help show us the ropes, and join in on the pitches. We were lucky to have a dry evening after a few afternoon showers, and players and spectators soon got into the swing of the games. After some hotly contested matches, the Pink team (Farrer & Co) won the tournament by a ½ rounder, although there were some fantastic moments in all games that made for some very exciting play throughout the evening with plenty of fantastic catches and even a few full rounders. Thanks to all of those who took part to make it such a great evening: BDB Pitmans, PAM, Seddons, Penningtons Manches, Farrer & Co, Withers, Canter Holland and of course, Greenhouse Sports. We have uploaded more photos taken [...]
Miles Geldard, Cerno Capital Investment Advisory Committee Member, Appointed as Chairman of the Elephant Protection Initiative Foundation
We are delighted that Miles Geldard, who sits on our Investment Advisory Committee, has been appointed as the CEO of the Elephant Protection Initiative (EPI) Foundation. The EPI is a leading anti-ivory trade campaign and lobby group bringing together 19 member states to spearhead initiatives to help member states raise money for and achieve their National Elephant Action Plans (NEAPs). These plans are designed to ensure a sustainable future for Africa’s elephants, and a better future for the people living alongside them. Miles has been a committed conservationist for decades, having moved out to Kenya following a career in finance during which he held numerous roles, including Chief Investment Officer at JP Morgan Asset Management, Adviser at the Central Bank of Botswana, and latterly as a Senior Advisor to Jupiter Asset Management. Miles has held a long interest in Africa - he is a trustee of Save the Elephants in Kenya, and helps to steer Hand in Hand International’s private sector outreach in Kenya. Miles commented, “I’m enormously excited by the opportunity to play such an important and unique role in elephant conservation. The EPI brings together an extraordinary range of African countries, united in their desire to save their [...]
On Tuesday 6th November, Nick Hornby was awarded the top award at the Spear’s Wealth Management Awards 2018, held at The Dorchester. The Outstanding Achievement Award is the highest reward that Spear's give out at what has come to be known as the UK’s “financial Oscars”. The awards celebrate the very best in wealth management, private banking and law, acknowledging innovation, success and outstanding contributions to wealth management and beyond. Presenting Nick with his award, the judges commented that, “[Nick is] a person of top quality, a fantastic ambassador for the industry doing something really different. A standout, praising his huge credibility”. We are delighted that Nick’s dedication to Cerno Capital’s investors over the past 11 years has been recognised by our peers.
Outside In and Cerno Capital are pleased to present Outside In: Discover, an exhibition celebrating artwork by three Outside In artists. Outside In was founded in 2006 at Pallant House Gallery and became an independent charity in 2016 following a highly successful decade. The award-winning charity works to provide a platform for people who face significant barriers to the art world whether due to health, disability, social circumstances or isolation, and currently supports 2,600 artists. We were able to collaborate with Outside In for this exhibition, displaying colourful works that are varied in style and representative of artists from diverse backgrounds reflecting Outside In’s inclusive ethos. All three exhibiting artists create work with strong, vibrant imagery, each with a very unique and distinct practice. Nnena Kalu works in an obsessive and determined way to develop a range of work with an underlying approach of a systematic layering. In the works on display, she uses repetitive lines which she draws in circular motion, responding to the rhythm and noise of creating the work. Once she has applied a painted background, she creates repeated lines with a circular motion, frequently following the same route to create heavily worked into vortex shapes and [...]
Fergus Shaw comments on the proposed £1.4bn takeover of John Laing Infrastructure Fund (JLIF), one of the UK’s biggest listed infrastructure funds, as "completely opportunistic". Click here to read the full article on FT.com
In his latest opinion piece on US markets, Michael Mackenzie references James's recent investment letter - “it is waning global demand which presents the greatest threat, exacerbated by a strong dollar, weakening of the Chinese economy and trade friction. These are hardly imaginary events.” Click here to read the full article.
James Spence's comments on US equities are included in Michael Mackenzie's column on the S&P 500's tough start to September. James notes, "it is waning global demand which presents the greatest threat [to US equities], exacerbated by a strong dollar, weakening of the Chinese economy and trade friction. These are hardly imaginary events." Click here to read the full article.
On Wednesday 25th July, we hosted an evening of Rounders and BBQ, letting six teams battle it out in Regent’s Park for a range of prizes. We were lucky to have a beautiful evening for the event, and players and spectators soon got into the swing of the games. After some hotly contested matches, the Pink team (Strabens Hall and Bircham Dyson Bell) won the tournament, although there were some fantastic moments in all games that made for some very exciting play throughout the evening. Thanks to all of those who took part to make it such a great evening: Bircham Dyson Bell, Strabens Hall, Pennington Manches, Laura Devine, Withers, Seddons, FED London, DWF Law, RSM, Panthera and Farrer & Co. We have uploaded more photos taken throughout the night to our Flickr account here.
We were delighted to recently support David Bell, PCD Club, and Fraser Dyer, FED London, as they undertook the Maidstone to Monaco Rally in aid of the Parenta Trust, who build schools and provide education for pre-school children in Uganda. Participants in the Rally have built 6 schools in the last 6 years, providing opportunities to some of the world’s poorest families. This year, the Rally group have raised £16,000 for the cause, which will provide education for 150 children. David and Fraser documented their journey over the Alps, which they share with us below: On Wednesday 27 June, 7 cars left Maidstone with a goal of getting to Monaco and back via the Swiss Alps in 5 days. The twist was that cars have to be bought for less than £500 and are decorated, coming in all shapes and sizes. On our trip was an ancient Volvo covered in carpet; a Land Rover with 250,000 on the clock and a Vauxhall Corsa that was about to be scrapped. Our car was a convertible 1997 MG MGF with 153,000 on the clock, easily the best car there! We were kindly sponsored in our mission by Cerno Capital and a couple [...]