Investors call it the eighth wonder of the world. Every fund manager knows the old quote that, “He who understands it, earns it; he who doesn’t, pays it.”
The “it” in question is compounding – and it’s the magic ingredient in the Λnβro Dynamic Compound portfolio, an Actively Managed Certificate (AMC) recently listed on digital capital markets platform Mesh.trade.
The Λnβro Dynamic Compound AMC is one of three global equity portfolios actively managed by Λnβro Capital Investments – alongside the Λnβro World’s Biggest BRNDZ AMC and the award-winning Λnβro Unicorn Global Equity AMC. Λnβro is a boutique asset management company with a decade’s experience in crafting innovative investment solutions.
Each fund offers different levels of risk and return, and all are crafted for investors who have a capital-growth mindset and a long-term investment profile of at least five years.
The Λnβro Dynamic Compound AMC is a US Dollar, high-yield, capital growth portfolio that targets better dividend yields than a composite benchmark by investing in global companies that sustainably generate large cash flows and subsequently pay out regular dividends to investors.
And that’s where the compounding works its magic. “The underlying provides a return that outpaces inflation and the markets over time,” explains Λnβro CEO Justiné Brophy. “And as the value of the portfolio grows, those dividends are being reinvested into the portfolio, giving you growth layered on top of growth. We keep reinvesting ever-growing dividends into an ever-growing portfolio, and as those returns compound, it becomes like a snowball rolling down a hill: it just picks up more and more value as it goes.”
The idea behind the Λnβro Dynamic Compound AMC is simple but powerful. “I’d always thought, ‘One day when I retire I’d like to live off my dividends’,” says Λnβro CIO Craig Antonie. “I wanted to get to a point where the dividends I’m earning replicate and replace my salary, so that no matter what happened to my job I would still have an income that I could live off without any negative effects on my lifestyle. That’s where the idea for Λnβro Dynamic Compound AMC was born.”
The underlying assets are global, blue-chip companies that are known to pay above-average dividends. Those equities are spread over a wide range of sectors, from real estate to insurance, utilities, healthcare, technology, financial services, and so on.
“Well-run and -managed businesses, after reaching a certain size, scale or market dominance, can find themselves in a position where they start generating more cash than they need to fund their growth ambitions,” says Brophy. “In these instances, they often turn to returning cash to their shareholders – either via share buybacks, increased dividends, or both.”
“Many of the underlying investment themes on Λnβro Dynamic Compound AMC are the same as on the Λnβro Unicorn AMC and Λnβro World’s Biggest BRNDZ AMC,” Antonie concludes. “It’s just at a different risk level. The Λnβro Dynamic Compound portfolio is tilted toward more stable, lower-risk shares. These are companies that are well established.”
Find out more about the Λnβro Dynamic Compound AMC, now available for investors on Mesh.trade.
