DIY Investor Magazine
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June 2017
21
SANNE
Sanne is an outsourced provider of back-office
functions to the asset management industry. It has
been a challenging environment for active managers
more recently: the much-reported downward pressure
on fees on account of the growth in passive investment
products; increasing costs in areas of regulation such
as MiFID II and the Retail Distribution Review (RDR);
industry consolidation; and the growth of alternative
investments, has all led bosses to strategically redirect
firms towards trimmed-down operations. These
favourable market conditions for Sanne are propelling its
organic growth to excesses of 15%.
ACCESSO
Accesso is a disruptor in queue management for theme
parks, primarily operating in the US and UK. Their
proposition lies in making the experience more fun for
the ‘thrill seeker’, while generating greater revenues in
the process – hand held systems notify you when to
queue for your desired rides and it’s tech encourages
spending. Interestingly they allow their customers to
access the technology themselves so that they can
build their own solutions, with cloud based delivery of
products enabling real-time updates.
Disruption stems from the fact they cut just 2% from
the ticket price whereas larger competitors can charge
in the 20%+ bracket. Its structural growth comes from
increasing penetration in online ticket purchasing and
new customers.
Amid rising import costs for many companies from weak
sterling and the pressure this is creating for domestic
names, our investment thesis remains to try and identify
firms that generate revenues somewhat protected from
macro-economic pressure and poised to structurally
continue growing into the future.
We also believe that by identifying names in the smaller
market-cap area of the market the exposure to this
positive trends is only concentrated, which should
enable us to continue delivering strong performance in
a range of market conditions.
Past performance is not a guide to future performance. The value of an
investment and the income from it can fall as well as rise and you may not
get back the amount originally invested. The information in this article
does not qualify as an investment recommendation.
