Today, Revera is launching a new look for our business.
The centrepiece of this rebranding is our website (www.reverafunds.co.uk) which contains a new look, and more information about our funds – but is also clearer about what we are trying to deliver for our underlying investors and how we intend to go about it.
There are four key messages that we highlight in the website;
1) We take care of your money as if it were our own
2) We give you all the information you need about your investment
3) We look after your wealth for the long term
4) We think for ourselves, we don’t follow others
There is nothing new in any of this for us, we have just put it into a new snazzy format on the website.
It did, however, come at the end of a formal strategy review process within our business, which considered the options that Revera could take over the medium and long-term. The results were comfortingly familiar. All businesses have to have the interests of their shareholders at the heart of what they do. But those interests will never be maximised unless it comes as a result of serving customers in the best way possible. Businesses for whom growth is the over-riding strategic objective are unlikely to achieve either of these things over the long term. Growth should be a by-product of doing things right, not an objective in itself.
Many will be aware that we believe that there are natural capacity limits to how much money we can run in our funds before we start to compromise our ability to invest with the flexibility and freedom we would like. For our UK Dynamic Fund, we have been specific that that limit is reached at £250m. The fund size is currently £60m with a strong performance track record. Strategically we can use our resources to capitalise on this and prioritise filling the remaining capacity as quickly as possible. Or we can choose to focus our resources on making sure that we do everything in our power to maintain that investment performance track record and be confident that if we achieve that our capacity will fill up soon enough.
Through this process we have reconfirmed to ourselves that this is the way we will take our business.
It is no surprise, however, that there is a lot of this in what we look for in companies in which we invest. A recognition that organic growth is much more preferable than acquired growth. Companies who understand where they sit within the value chain of customer needs. Companies who recognise that long term sustainability of profits is more important than what happens in the next quarter.
Revera hasn’t changed as a result of this rebranding. But we hope our message is a lot clearer.