Waystone supports Canaccord Genuity’s launch of Cashflow Returns on Capital ETF

Waystone has announced the launch of the Quest Global Equity Cashflow Compounder ETF via its white-label ETF platform. 

The launch marks Quest’s first entry into the ETF market in its 30-year history.

The firm writes that the new ETF brings Quest’s established cashflow-based investment approach to investors through a transparent, rules-based structure. Listed on the London Stock Exchange in USD and GBP, the fund will initially target UK investors.

The ETF tracks the Quest Global Equity Cashflow Compounder Index, which comprises 30 liquid global companies selected for their ability to generate strong cashflows. Quest’s proprietary methodology focuses on the cash businesses generate relative to the capital they employ, offering investors an alternative measure of corporate quality to traditional accounting-based metrics such as return on equity.

The firm writes that since its inception in 2015, the Index has delivered long-term returns in excess of the MSCI World Index. 

“The launch makes Quest’s longstanding investment methodology available through an ETF for the first time, providing investors with a new way to access its approach to identifying high-quality global companies.

“Hosted on Waystone’s white-label ETF ICAV platform, the fund benefits from Waystone’s specialist ETF infrastructure and services, supporting Quest’s entry into the ETF market without the cost and complexity of building its own operational set-up.”

James Congdon, Head of Quest at Canaccord Genuity, says: “For more than 30 years, Quest has provided institutional investors with differentiated research focused on cashflow as the foundation of corporate quality, and the launch of our first ETF marks an important new chapter in bringing insights from that research to a broader range of investors in a transparent, rules-based form. We are grateful to Waystone for their support in bringing this opportunity to market.”

Paul Heffernan, Global Head of Waystone ETFs, says: “We are delighted to partner with Quest on its first ETF, bringing a distinctive investment strategy to market. This launch demonstrates how our ETF white-label platform can support established investment firms as they expand into ETFs, providing the specialist ETF expertise across capital markets, customised operating infrastructure and world class governance needed to launch efficiently and build for long-term growth.”