SIA Funds is a value asset management firm whose objective is to achieve an average return of 10% per year and outperform the returns of its benchmarks in the long term. They stand out due to their extraordinary knowledge of the energy and raw materials market and for the successful evolution of their investment policy that had been put in place more than 10 years ago.
They invest in companies for which they pay little when compared to the cash currently generated. There are four types of company that they invest in:
- Global companies with a clear leadership position in their markets, such as Visa or Coca-Cola, with which they seek annual returns greater than 10%.
- Companies not as well-known as the previous ones, which are global leaders in different niches, such as Viscofán or Vidrala. They look for at least 12% in annual returns for these companies.
- Cyclical companies in which they expect at least 14% in annual returns.
- Restructuring cases in which they aim to obtain an annual return of more than 16%. These companies never consist of more than 10% of the portfolio.
SIA offers a global fund, which is registered in Luxembourg, called LTIF Classic. This fund has managed to multiply the first investors’ capital by more than 6.1 times since 2002. Comparatively, MSCI World only multiplied their capital by 3.5 times during the same period, including the dividends. It has close to €100m in assets.
It is one of the very few asset managers in Europe that specialises in global companies where little is paid in compared to the cash generated by the companies today. We believe that they provide a lot of value in a diversified fund portfolio.
Its other fund is the LTIF – Natural Resources, which is a fund focused on natural resources. It has around €80m in assets.
