Most investment platforms levy an administration charge for holding your funds, which is based on a percentage of your investment or a flat fee. Some platforms also impose a fund dealing charge which you pay when you buy or sell shares in a fund.
By investing in the Blue Whale Growth Fund directly through Link Asset Services there are no platform fees or fund dealing charges to pay.
Data as at 30 June 2021
The Top 10 holdings in the LF Blue Whale Growth Fund make up approximately 50% of the total value of the fund.
In picking our Top 10, we employ what we internally call ‘The Beautiful Companies Concept’. That is picking those companies which fulfil several important criteria that we believe makes them ‘beautiful’. They represent our highest conviction picks within the portfolio and offer, we believe, a significant upside to the current share price.
Here we take a look at each of our Top 10 holdings and explain why they feature in top positions within our portfolio.
Please note that the Top 10 is provided for information only and the views we express on holdings do not constitute Investment Recommendations and must not be viewed as such. The sectors stated are Blue Whale's proprietary classifications which may differ from the Global Industry Classification Standard (GICS) referred to on the Factsheet.
Adobe has more than 50% of the digital content creation software market. Whenever you view an image, video, website, magazine, or even an app, there is a good chance it was created using its software. We believe Adobe will be a major beneficiary of continued explosive growth in this market, as ever-richer digital content is consumed across devices. Meanwhile, Adobe’s pioneering transition to a subscription model is unlocking international growth opportunities and helping to combat software piracy.
The first internet company whose name turned into a verb, Google has become synonymous with finding answers online. Branching out into maps and email, the company now provides services that are so embedded in our lives that we can’t imagine life without it.
Capitalising on its near-monopoly in online search, the company is reinvesting its profits from digital advertising into the platforms of the future - including driverless cars and augmented reality - which we see fuelling its journey to a multi-trillion dollar company.
AutoCAD, Revit and Inventor are industry-standard computer aided design (CAD) tools made by Autodesk that are deeply embedded in the construction and manufacturing industries.
We’re optimistic about Autodesk for a number of reasons: Autodesk is helping to drive a long-overdue ‘digitisation’ of the construction industry with paper drawings and post-it notes being replaced by digital models and iPads. A subscription transition in the vein of Adobe and Microsoft should bring Autodesk closer to its customers, provide more predictable cash flows, help to combat software piracy, and allow delivery of continuous innovation to customers. On the final point we are excited about advances that Autodesk is making in areas like web-based CAD, Generative Design and software tools for 3D Printing.
How Facebook is used is often subject to debate, but we believe the outlook for the business is much more positive. 1.7 billion people or 20% of the world’s population log into Facebook every day. That number grows by a few hundred million every year. Advertisers continue to love the enormous reach and precise targeting that Facebook offers. They spent more than $10bn developing the platform every year. We are optimistic about future growth prospects driven by continued increase in the number of advertisers, further improvement in the relevance of ads, the nascent monetisation of WhatsApp, e-commerce particularly on Instagram and perhaps even digital payments.
Intuit is the company behind both QuickBooks, the leading accounting software for small business globally and TurboTax, the leading tax-filing software for individuals in the US. This niche focus and an excellent management team that embraces ‘self-disruption’ have helped Intuit to thrive across various technology era’s (DOS, Windows, Web and Mobile) since its founding in the 1980s.
While accounting and tax may sound ‘boring’, Intuit enjoys myriad growth opportunities. The majority of small businesses still don’t use any accounting software and the majority of US citizens still pay professionals to help file their taxes. Technology is helping to change both. For example, QuickBooks Online, the web and mobile based version, allows receipts and invoices to be captured in seconds using a smartphone camera and automatically matched to bank statements. QuickBooks Online has grown their subscribers from 700k to 3.4m in just 3 years – impressive, yet still only a fraction of the hundreds of millions of small businesses globally that Intuit targets.
2021 is the Year of Gucci in the world of fashion, marking its 100th year since founding.
This should be a boon for its holding company, Kering, which we expect will experience an unprecedented wave of brand awareness and sales through the many celebratory events, including a feature film starring Al Pacino and Lady Gaga. Kering, which also owns Bottega Veneta, Saint Laurent, Balenciaga and eight other luxury brands appears particularly attractive for us as it catches up with other giants of the industry like LVMH and Hermes
Mastercard is a high quality business benefiting from the structural shift of payments away from cash to mobile, online and contactless transactions. At its core, Mastercard runs BankNet, a global payment network connecting major banks for verifying and processing card payments. Mastercard is able to process hundreds of millions of transactions per day due to its superior technology. Looking ahead, Mastercard is seeking to build on its successes in consumer payments to business-to-business transactions (much of which is still made manually by cash or cheque) and we are confident in their ability to navigate and execute on this multi-decade opportunity.
Microsoft’s products; Windows, Office, server operating systems and developer tools, are part of the foundation of almost every enterprise. But history is littered with examples of companies in such enviable positions that abuse their power over customers and fail to adapt to a changing world. We believe Microsoft is a rare exception.
Since taking over as CEO in 2014, Satya Nadella has reinvigorated Microsoft by pursing a more ‘open’ strategy (Office 365 works on Apple iPhones - unthinkable previously), overhauling internal culture to attract the best talent and focusing attention firmly on the future of technology (Microsoft is one of the top contributors to open source software and artificial intelligence research).
Nintendo is the owner of timeless family-friendly gaming IP including Mario, Zelda and Pokemon. The company has been able to update its games franchises to stay with the zeitgeist over the last four decades and has been relentlessly adding to its roster of best-loved games over time.
Nintendo is an innovative company and we believe the Nintendo Switch represents a game-changing (pardon pun) way of keeping fans engaged and updated beyond the traditional console cycle.
Visa is a high quality business benefiting from the structural shift of payments away from cash to mobile, online and contactless transactions. Visa operates VisaNet, a global payment network connecting major banks for verifying and processing card transactions. In 2018, Visa successfully merged its European and global operations so that its full array of value added products and services (especially in transaction security) could be rolled out across bank and fintech customers across Europe. Like Mastercard, Visa is building on its successes in consumer payments and bringing this to the B2B space. We are confident in their ability to navigate and execute on this multi-decade opportunity.
Subscribe to receive the latest Blue Whale updates