Sanford Deland is planning to add its first investment trust to its small stable of funds that will use the Buffettology branding employed on Keith Ashworth-Lord’s fund.
SDL would not comment on the planned launch but filings on Companies House show the Buffettology Smaller Companies Investment Trust was incorporated on 31 July. SDL is listed under “persons with significant control” while its chief executive Alex Brotherston is named as an officer alongside Ashworth-Lord (pictured).
In June 2019, Ashworth-Lord told Portfolio Adviser that SDL was in talks regarding the licencing of the Buffettology brand for more funds. He said at the time the launch would take place within the next year and would become the third strategy in the SDL stable alongside his flagship £1.3bn SDL Buffettology fund and the £15.2m SDL Free Spirit fund.
Warren Buffett’s former daughter-in-law Mary Buffett owns the Buffettology trademark alongside David Clarke, an early shareholder in Berkshire Hathaway.
The Association of Investment Companies said getting an investment trust off the ground can take between three to four months, but that it was also difficult to generalise. The main steps involved in establishing an investment trust include preparing the prospectus, recruiting the board and any pre-marketing.
SDL takes a business perspective investing approach to fund management. This means it seeks out business models with an enduring franchise and pricing power, predictable earnings, high returns on capital employed, strong free cash flow, strong balance sheet, and no undue reliance on acquisition-led growth.
See also: Sanford Deland reveals Rosemary Banyard replacement on Free Spirit
