Global equities strategies

Fund manager: John William Olsen

The is a core global equity proposition, investing in a concentrated portfolio of quality companies, with ‘economic moats’ which aim to protect their profitability and an element of change helping to drive their value.

• A core, concentrated portfolio of quality, primarily developed market-listed, companies, with environmental, social and governance (ESG) at the heart of the manager’s assessment of businesses.
• A long-term, low-turnover strategy where patience is key, taking advantage of short-term share-price weakness to invest in quality companies at attractive valuations.
• Strictly focused on valuation, waiting for short-term ‘disruptions’ which provide clear valuation opportunities before investing in a business.
• A dynamic investment framework, designed to help the fund cope in different market conditions, with a particular focus on risk.

Fund manager: Michael Bourke

This strategy seeks to invest in emerging market companies whose long-term prospects are deemed undervalued. It is our belief that shareholder value creation, rather than economic growth, is what drives share prices over the long run. We believe that there is a strong link between a company’s return on capital and its valuation. Our investment approach therefore focuses on company fundamentals, in particular a firm’s level of return on capital and how that is reflected in the valuations of the shares. We also pay close attention to corporate governance practices to identify companies that are run in the interests of all their shareholders.

• A strategy focused on return on capital. We undertake rigorous fundamental analysis to identify companies that use capital efficiently to create value for their shareholders over time.
• A distinctive process and method of portfolio construction that is designed to deliver consistent performance across different market conditions by selecting stocks with distinct drivers of return on capital.
• An active, long-term value-oriented approach that seeks to identify mispriced opportunities by taking advantage of the short-term, sentiment-driven nature of emerging market investors.

Fund manager: Stuart Rhodes

This strategy follows an unconstrained approach in global equities with the aim of outperforming the MSCI ACWI Net Return Index over the long term. The strategy also has an income objective of providing a rising income stream and a yield premium.

The team seeks to invest in companies with potential for long-term dividend growth. This approach is based on the fundamental belief that companies generating rising dividends, bought at sensible valuations, will deliver excellent total returns over time through the combination of income growth and capital growth. Dividends and share prices go hand in hand.

The strategy is designed to benefit from the following:

• The tailwind of dividend investing.
• A bottom-up approach focused on fundamental analysis and valuation.
• A disciplined process which selects stocks from three distinct categories of dividend growth: ‘quality’ (defensives), ‘assets’ (cyclicals) and ‘rapid growth’ (growth).

The process provides flexibility and allows the fund manager to invest outside the defensive stocks most commonly associated with dividend strategies. The outcome is a balanced portfolio which is designed to cope with a variety of market conditions. The strategy will usually hold around 50 stocks backed by conviction and a long-term time horizon of three to five years. Investors seeking income can receive distributions paid quarterly.

Co-fund managers: Richard Halle, Daniel White and Shane Kelly

This value style strategy focuses on identifying shares in cheap or out-of-favour companies that the managers believe are undervalued, with the aim of benefiting from prices returning to levels reflective of the true value of the business.

• The strategy considers a wide global investment universe of stocks to create a well-diversified portfolio while avoiding challenges associated with value investing such as volatility and so-called ‘value traps’ that is stocks that are cheap for a reason.
• It aims to exploit the mean-reverting behaviour of stock prices, whereby shares that are too cheap eventually return to a more ‘normal’ valuation reflective of the company’s underlying value.
• The investment approach combines a strict valuation screen and rigorous fundamental analysis to ensure the portfolio maintains a strong and consistent value bias without compromising on the quality of the companies.
• The main drivers of returns are expected to be the value style rather than any individual sector or stock.

Fund manager: Alex Araujo

An active global equity strategy which aims to outperform the MSCI ACWI Index over any five-year period by investing in beneficiaries of long-term themes.

Investment approach:

• A disciplined approach which combines top-down analysis of structural trends and bottom-up stock selection driven by fundamental research.
• A conviction-backed portfolio which focuses on the four themes of demographics, environment, infrastructure and innovation.
• A modern approach which integrates ESG in the investment process, led by independent research and company engagement.