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A focus on quality and valuation differentiates Appian Funds


To get different results, you have to do something different. At Appian we recognise this and as we seek to provide a superior risk return profile from our equity portfolios, we follow a differentiated disciplined approach to equity investing. This approach involves a strict focus on the quality of companies we own as well as the valuation of these companies. 

One measure of quality we place a lot of emphasis on is CFROC – Cash Flow Return on Capital. This measures the cash flow return a company generates on the capital it has invested.  Appian Funds today have CFROC’s which are far superior to the Market*.


Source: Canaccord Genuity – Quest
 
Whilst quality is central to our investment philosophy, so is valuation. We believe that it’s the combination of quality and valuation that will drive our investment returns. One valuation metric we look at is the Price to Earnings (P/E) ratio, which is the price paid for each unit of earnings. Appian Funds today have P/E ratios which are considerably less than the Market*.


Source: Canaccord Genuity – Quest
 
One side effect of this investment style is increased takeover activity within the funds. This is particularly evident in the Appian Small Cap Fund where 14 stocks have been taken over since the fund was launched 4 years ago. It is also evident in our larger equities and this can be seen by the recent bid by Qualcomm for NXP Communications, which is set to be the largest takeover ever in the Semiconductor sector.
 
* Calculations based on median of Cash Flow Returns on Equity and Price Earnings ratios of equity constituents of portfolio. Market is as measured by Canaccord Genuity - Quest
 

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The information contained in this material is not financial advice. Nor does it constitute an offer for the purchase or sale of any financial instruments, trading strategy, product or service. No one receiving this material should treat any of its contents as constituting advice. It does not take into account the investment objectives, knowledge, experience or financial situation of any particular person. You should seek advice in the context of your own personal circumstances prior to investing or taking out any product from your own independent adviser.
 
This material has been prepared and issued by Appian Asset Management Limited on the basis of publicly available information, internally developed data and other sources believed to be reliable. While all reasonable care has been given to the preparation of the information, no warranties or representation, express or implied are given or liability accepted by Appian Asset Management Limited or its affiliates or any directors or employees in relation to the accuracy, fairness or completeness of the information contained herein. Any opinion expressed (including estimates and forecasts) may be subject to change without notice. 

If you decide to invest in the Appian Unit Trust, further information in relation to all risks is provided in the Fund Prospectus and supplements. This material is available from Appian Asset Management Limited, 42 Fitzwilliam Place, Dublin 2. If you invest in the Appian Unit Trust, you may lose some or all of the money you invest. The value of your investment may go down as well as up. This investment may be affected by changes in currency rates. 

References to past performance are for illustrative purposes only and are not a reliable guide to future performance. Projected returns are estimates only. Forecasted returns depend on assumptions that involve subjective judgement and on analysis that may or may not be correct. 

The above disclaimer and limitations of liability are applicable to the fullest extent permitted by law, whether in Contract, Statute, Tort (including without limitation, negligence) or otherwise.
 
Appian Asset Management Limited is regulated by the Central Bank of Ireland. 
 

Appian Unit Fund Prices  
1 November 2016 
Appian Value Fund
Appian Equity Fund
Appian Small Companies Opportunities Fund
Appian Liquidity Fund
Appian Ethical Value Fund
136.37  
157.43    
178.20
106.26  
96.19

For more detailed information on each of our funds click here

Patrick J Lawless
Chief Executive Officer
Eugene Kiernan
Head of Investment Strategy
Frank O’Brien
Consultant
John Mattimoe
Head of Equity Analysis
 
Lisa Neary
Fund Manager
Niall Dineen
Senior Fund Manager
Click here for more information about our Investment Team
Kevin Menton
Director
Tel: (01) 662 3989 direct
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John Flavin
Senior Relationship Manager
Tel: (01) 662 4053 direct
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Pat Kilduff
Senior Relationship Manager
Tel: (01) 662 3985 direct
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Cillian Quinn
Client Relationship Executive
Tel: (01) 662 4055 direct
Click here to email Cillian
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