Bill Mann, Chief Investment Strategist of Motley Fool Asset Management, joined Keith Black, Managing Director of RIA Channel, to discuss the firm’s investment philosophy that seeks to take long-term positions in high-quality companies, with some stocks held since the inception of the funds.
Mann joined The Motley Fool in 1999 and moved to Motley Fool Asset Management when it started in 2008. The mutual fund business started in 2008 and transitioned into ETFs in 2018. Today, Motley Fool Asset Management has six passive and three actively managed ETFs, totaling $2.6 billion. The ETFs use the Motley Fool investment philosophy that takes long-term positions in high-quality companies.
The passive funds are systematic and follow the rules-based, transparent methodology of The Motley Fool Indices. The majority of assets are held in The Motley Fool 100 Index ETF (TMFC), which holds a cap-weighted portfolio of 100 stocks favored by Motley Fool analysts, and has outperformed the S&P 500 index since inception. A mid-cap version (TMFX) holds 150 companies.
Newer passive funds hold factor-based portfolios, including innovative growth (MFIG), value (MFVL), momentum (MFMO), and capital efficiency (TMFE). The value fund holds high-quality companies selected by the Motley Fool’s analyst team that trade at low multiples of price-to-book and price-to-cash flow. Rather than selecting the companies with the highest growth rates, the innovative growth fund invests in companies expected to maintain sustainable growth over the long term. Because of their long-term investment philosophy, most funds have annual turnover rates of around 30% to 40%. The momentum fund, which takes advantage of the tendency of companies that perform well to continue to do so, typically has higher turnover. Active funds include global opportunities (TMFG), small-cap growth (TMFS), and mid-cap growth (TMFM).
WEBCAST REPLAY– Asset Prices, AI, and Affluent Consumption: The Three A’s of the U.S. Economy
What happens when the “rising tide” lifts just a few specific boats? The U.S. economy’s narrow-breadth expansion—driven by only three key forces—is a precarious conundrum for investors. Discover why asset prices, AI, and affluent consumption are such powerful economic drivers for the aggregate economy, and how to position your investment strategies accordingly with ETFs.
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The statements in this interview represent the opinions of the speaker, Bill Mann, and do not necessarily reflect those of Motley Fool Asset Management, LLC (“MFAM”). They should not be deemed as investment advice or a recommendation to purchase or sell any specific security. All information expressed is subject to change without notice. All information expressed in this presentation is subject to change without notice. There is no representation or guarantee that any opinion, estimate or projection will be realized. The information is believed to be reliable at the time of the interview, however no representation or warranty is made concerning its accuracy.
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