You asked, we answered - Wellington Management is back in the spotlight!

Moo_Rich wrote a column · Jun 29, 2023 09:34

Hi, mooers!

After receiving so many valuable questions in Funds Talk 01: Discover the unique perspectives of Wellington Management!, we decided to put Wellington Management back in the spotlight! Responses are finally collected and released!

In a recent conversation, we put Wellington in the hotseat and have distilled what we believe are their best of their insights for you!

@cola1010

How does Wellington Management keep abreast of developing trends and opportunities in the continuously evolving technology and innovation industries, and what consequences do these have for its fund products?

Wellington's true competitive advantage globally is the depth and breadth of its investment platform. The firm has over 1,000 investment professionals around the world and at the core of that is its proprietary research — its global industry analysts (GIAs). Each GIA is responsible for a specific industry, is a specialist in his/her field and has developed investment frameworks that have proven most relevant to his/her particular philosophy, process and industry.

As of 31 March 2023, Wellington Management had 54 GIAs in total, and the technology sector was covered by 11 GIAs with an average experience of 18 years, analyzing subsectors like semiconductors, software and cloud technology.

Both the Wellington US Quality Growth Fund and Wellington Multi-Asset High Income Fund are available on Moomoo. The investment team for these two funds works closely with the GIA platform, leveraging its deep research in making investment decisions.

What specific measures does Wellington Management employ in the Wellington US Quality Growth Fund to minimize downside risk, and how does the fund's dynamic allocation approach help to control volatility and respond to changing market conditions?

In the investment team’s view, consistent alpha generation requires high active share and downside protection, both of which are as important as upmarket capture. Reducing the impact of market declines can have a significant benefit for long-term investment performance. Selecting high-quality stocks can help reduce downside exposure; in times of market stress, quality companies generally have cleaner balance sheets and will typically continue returning capital to shareholders via dividends or share buybacks, which enhances their appeal.

Moreover, the Wellington US Quality Growth Fund has a flexible stock-ranking approach, where factor weight (valuation, growth, quality and capital return) is adjusted in a disciplined way observing Wellington’s proprietary Global Cycle Index. The Global Cycle Index is Wellington Management's proprietary index, which tracks global economic activities with various macro quantitative inputs. Generally speaking, in positive trend, Wellington’s US Quality Growth Team will allocate more weight on valuation and growth, and less weight on quality and capital return. In negative trend, the team will allocate more weight on quality and capital return, and less weight on valuation and growth.

@Godspeed289

What is your overall investment philosophy?

One unique aspect of Wellington is that it does not have a chief investment officer (CIO). From its global network of investment boutiques to its private ownership model, Wellington is independent by design. By debating new ideas and sharing research across asset classes, regions and investment disciplines, its investors can potentially uncover hidden insights, risks and opportunities. Wellington has built an integrated investment ecosystem combining nearly 50 independent investment teams and 1,000+ investment professionals under a single management framework.

Are returns over time consistent with Wellington Management strategy’s stated objectives?

For $Wellington Multi-Asset High Income Fund MDis (LU2430703178.MF)$

The diversified nature of the strategy is such that the investment team aims to avoid situations where a single sector, stock or risk factor is materially driving the returns and risks of the portfolio. The team has managed to distribute income1 (please refer to dividend records on Moomoo page) since inception (1 Feb 2022) because the Fund’s sources of income generation are diversified to avoid overreliance on a single market or investment style. The team believes investors want consistency of income with some capital growth but don’t want their portfolio managers to take an unnecessary risk of capital loss to get there.

*Only one currency/dividend type will be displayed for the same fund.

For $Wellington US Quality Growth A USD Acc (LU2361045086.MF)$

The Fund’s primary emphasis is on bottom-up stock selection, so stock selection is expected to be the source of alpha. There may be short-term headwinds to the approach from time to time, especially in a period during which low-quality stocks outperform, but the investment team remains confident in its alpha generation capability with its robust and disciplined investment process.

@taichimaster

What is the uniqueness and quality of your selections that can set you apart from other fund houses?

Wellington’s sole focus on investment management for its clients allows it to concentrate on its goal of exceeding its investment and service expectations. Its private ownership model (Wellington Management is not publicly listed) also provides stability, allowing it to focus on long-term results, aligns its interests with those of its clients, and helps the firm to recruit and retain outstanding talent.

@SuperNoobPaPa

I am a regular DCA investor for Wellington US Quality Growth Fund. The investment philosophy of the fund manager & diversification provides me the confidence that over time, my asset accumulation under Wellington US Quality Growth Fund will pay off handsomely. What is your current investment focus which you think will outperform your peers?

Applying the Wellington US Quality Growth Fund’s consistent philosophy and process, the investment team’s goal remains to own companies that rank most attractively based on four factors: growth, quality, valuation upside and capital returns to shareholders. Looking ahead, the team finds some themes particularly attractive:

Information technology: accelerated digital transformation and growth of cloud infrastructure are benefiting payments and software services providers, while data analytics companies quicken and improve decision-making processes.

Financials: companies are experiencing increased demand for investment products. Meanwhile, high-quality insurers are positioned to benefit from rising interest rates as asset values rise with inflation.

Health care: health care insurance providers are expected to benefit from ageing populations and unmet needs.

@魑魅魍魉2222

Which fund focuses on long duration investment grade bond from developed market?

We are so sorry that Moomoo SG has not provided access to any of Wellington's funds that concentrate on long-term investment grade bonds from the developed market as of yet. Please stay tuned!

Let's give a big applause to all the mooers above for winning an S$8.8 fund cash coupon each!

Thanks for your support to Moomoo Funds Talk Column always!

We are greatly inspired and encouraged by your active interactions! And we will keep sharing more with you in the upcoming days.

If you have any questions, please feel free to reach out to us at any time!

See you next time!

*1 Distribution payouts and its frequency are determined by the manager, and can be made out of income, capital or both. Investors should note that the payment of dividends directly out of capital may result in an immediate reduction of the net asset value per share of the Fund. Distributions are not guaranteed and may fluctuate. Past distributions are not necessarily indicative of future trends, which may be lower. For further information, please refer to the dividend document located on the website: www.wellington.com.sg or dividend records available on the Moomoo app.

Important Information:

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. Information contained herein is provided for information purposes and does not constitute financial advice or recommendation with respect to the Fund and is prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. Investors should read the prospectus and the Product Highlights Sheet and seek financial advice before deciding whether to purchase shares in the Fund. The value of the shares of the Fund may fall or rise. The Fund may use or invest in financial derivative instruments for portfolio management and hedging purposes. Investments in the Fund are subject to investment risks, including the possible loss of the principal amount invested. Subscriptions may only be made on the basis of the latest prospectus and Product Highlights Sheet, and they can be obtained from Wellington Management Singapore Pte Ltd or Fund distributors upon request.

This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more

Translate

Report

37K Views

Comment

Moo_Rich

Moomoo Community Official Account

Find quality funds, make friends with time and make money plus.

19K

Followers

137

Following

76K

Visitors