Investment ObjectiveTo increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a diversified portfolio of stocks of companies in Europe (excluding the UK).
- Fundamental research is critical to successfully identify and assess long-term investment opportunities. The portfolio benefits from our considerable equity research resources with over 20 European analysts seeking insights into the industries and companies that they cover.
- We look to discover quality businesses that will benefit from change, either as a result of being on what we believe to be the “right side” of change, or from idiosyncratic change, and where we have an insight on key long-term drivers for the stock.
- Valuation needs to present an attractive risk/reward profile, and we follow this overall approach across the market cycle and across style and market cap boundaries.
- ESG considerations are embedded across our investment process, particularly as they can be a key indicator of the durability of a business and a source of change across many industries.
- Risk management is integral to the portfolio construction process, and the portfolio benefits from close collaboration with our Risk, Quantitative and ESG teams as well as other investment personnel.
- Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.
- Typically 40-70 stocks
- Individual position size up to 4.0% relative to the benchmark
- Sector ranges: typically +/- 10% relative to benchmark
- Country ranges: typically +/- 10% relative to benchmark
- Expected Tracking Error: typically 3.0% to 6.0%
- Information Ratio objective: >0.5
- Cash target range: fully invested, typically less than 5.0%
- Turnover range: 30%-60%