Pyrford International | Columbia Threadneedle Investments

Pyrford International is an investment boutique that operates independently within Columbia Threadneedle Investments. Pyrford is a provider of global asset management services for collective investment funds, investment management companies, local and state bodies, pension schemes, endowments and foundations. The company has been operating from its London, UK base since 1987. The investment approach is rooted in capital preservation through a clear focus on quality and value. Pyrford invests across global equity and bond markets on behalf of clients.

A quality and value-driven, absolute return approach

Our investment philosophy is based on a quality and value-driven, absolute return approach. At the stock level, we identify companies that are fairly valued or undervalued in relation to their potential long-term earnings growth, whilst at the country level, we seek to heavily overweight countries that provide good value relative to their long-term prospects and underweight or avoid countries that do not.

This approach produces long-term investment returns characterized by very low absolute volatility and excellent downside protection.

Investment process

The first stage in the decision process is asset allocation and country allocation. We make five-year earnings projections for the fixed income and equity markets in our universe. This framework allows us to determine the relative value across markets and from this we derive our asset allocation and country allocation strategy.

Our process is a mixture of asset, country allocation and stock selection.

We measure relative value in equity markets in the following way: Current Dividend Yield + Forecast Long Term Earnings per Share Growth (expressed in real terms).

The process involves integrating many sources of information with emphasis on our in-house research expertise.

We do not invest in any country which does not satisfy our minimum requirements in relation to accounting standards, investor protection and political stability.

Following the country allocation decision, we use a disciplined, bottom-up process to determine individual stock value. We look for:

Well-priced companies that are leaders in their industry
Superior management and a sound capital structure
Medium-to-large capitalization companies within their respective markets

The next step in our process is to perform a rigorous financial analysis to help determine earnings per share and total return expectations for selected companies. This helps us understand the dynamics of:

Company growth
Earnings quality
The likelihood of trends being maintained

The analysis is comprehensive and includes a retrospective five-year study of the balance sheet, income statement, the statement of changes in the financial position, and a management interview.

The difference is research

We believe our face-to-face interviews with management are crucial. A stock will not be selected for investment prior to our meeting with management. We also revisit management at least once a year as long as the stock remains in the portfolio.

These company visits provide us with first-hand knowledge of the company, its management, and its operations. They also give us invaluable input for our macro analysis, and help point us toward developing economic trends, trends that have not yet been reported in officially released statistics.

In-house research is of prime importance to our process. All of our investment professionals participate in the research process. Investment analysts tend to concentrate on individual company analysis whereas the more senior professionals are involved in all aspects of the research function.

We also seek out independent commentators and analysts who challenge our thinking on both macro and micro issues. We have developed close professional relationships with many organizations and individuals. They form an integral part of our research process.

Investing with a global perspective

To meet the challenges of today’s investing environment, you require access to investment solutions managed with regional expertise and a global perspective. We offer a range of products in both segregated and pooled fund management to meet that need.

Global Absolute Return Strategy
Global Equity
International Equity
European Equity

Responsible Investing

Pyrford has been managing assets using the same, proven value-based fundamental process for over 30 years. We have always assessed companies over the long-term, seeking out those capable of generating earnings sustainably through the development of products and services which are valuable to their customers, hard to replicate and unlikely to be replaced. Central to the sustainability of a business is its relationships with suppliers, customers, employees and shareholders, along with its impact on the environment. Companies can survive for the short term-term, taking irresponsible approaches to these areas but to prosper companies must demonstrate leadership in each of these areas.

ESG Report & Sustainability Risk Policy

Pyrford International (Pyrford) is delighted to introduce the latest instalment of our annual Environmental, Social and Governance (ESG) Report. This is the fifth year that we have produced a report covering our ESG activity over the previous calendar year. I would like to start by thanking all those who have provided feedback on previous editions and I look forward to hearing from you on our latest report.

Pyrford has been managing assets for over 30 years using the same, proven value-based fundamental process. We have always assessed companies over the long-term, seeking out those capable of generating earnings sustainably through the development of products and services which are valuable to their customers, hard to replicate and unlikely to be replaced. Central to the sustainability of a business is its relationships with suppliers, customers, employees and shareholders, along with its impact on the environment. Companies can survive for the short term-term, taking irresponsible approaches to these areas but to prosper companies must demonstrate leadership in each of these areas. This report will demonstrate how we encourage the companies we invest in to move to these positions of leadership.

To demonstrate our full commitment to the Financial Reporting Council’s (FRC) UK Stewardship Code, we believe it is appropriate to report on this area in more detail, particularly on engagement and proxy voting.

We trust our readers will find the following paper useful and we would welcome comments and feedback for future editions. Furthermore, we would be delighted to meet with clients and indeed peers to engage on any of the issues raised.

UN Principles for Responsible Investment

Pyrford International is a signatory to the United Nations Principles for Responsible Investment (PRI). This formalises the company’s long-standing commitment to considering Environmental, Social, and Corporate Governance issues as part of its wider research process, in the expectation that companies with sustainable long-term approaches to these issues will ultimately produce better returns and, importantly, less risk for our clients.

As a signatory, and where it is consistent with our fiduciary responsibilities, we have committed to the following:

We will incorporate ESG issues into investment analysis and decision-making processes.
We will be active owners and incorporate ESG issues into our ownership policies and practices.
We will seek appropriate disclosure on ESG issues by the entities in which we invest.
We will promote acceptance and implementation of the Principles within the investment industry.
We will work together to enhance our effectiveness in implementing the Principles.
We will each report on our activities and progress towards implementing the Principles.

Proxy Voting

Pyrford’s policy with respect to the voting of proxies is clear and simple. Firstly, if the Trustees of the funds under our management direct us to vote in a particular way, we will of course implement their instructions. In the absence of such instructions from the Trustees, it is Pyrford’s policy to consider every resolution individually and to cast a proxy on each issue; the sole criterion for reaching these voting decisions being the best interests of the client. This is part of Pyrford’s broader fiduciary responsibility to its clients.

Conflict of Interest Policy

Pyrford International is pleased to publically disclose our firm’s Conflicts of Interest policy.

This policy applies to Pyrford International Ltd., all employees and contractors. It sets out our approach to identify and manage conflicts of interest which may arise during the course of our business.

Task Force on Climate-Related Financial Disclosures (TCFD) Reports

Regulatory Information

KIIDs - Pyrford Global Total Return Fund

KIIDs - Pyrford Global Equity Fund (USD)

KIIDs - Pyrford Global Equity Fund (Sterling)

KIIDs - Pyrford International EAFE Equity Fund

PRIIPS KIDS

European MiFID Template (EMT)

European PRIIPs Template (EPT)

Solvency II - Solvency Capital Requirement

Columbia Threadneedle Investments (Ireland) plc

A shareholder notice was issued on 12 July 2017 relating to planned amendments to (i) the Business Day definition and (ii) the source and/or frequency of distributions for Columbia Threadneedle Investments (Ireland) plc. These changes have now been approved by the Central Bank of Ireland and will be effective on 1 September 2017. A revised Fund Prospectus reflecting these changes is now available.

UK Tax Reporting