All-country, core investment mandate
Core investment style with a long-term focus on companies in developed international and emerging markets
Diversified exposure to three types of investments
Opportunities in companies where the market underappreciates the durability of growth, underestimates positive change toward more durable growth, and undervalued cyclical businesses with competitive advantages
Consistent and less volatile outperformance
Active, risk-optimized portfolio management that strives to generate consistent results in most market environments
Our philosophy is anchored in bottom-up fundamentals and risk management.
We believe companies with superior, self-sustaining business models deliver attractive returns over the long term. Over the shorter term, most of these models have their sustainability questioned, for either structural or cyclical reasons, and the dislocation this causes creates opportunities for us to own them at attractive valuations.
Global equity exposure
- Exposure to the dynamic growth prospects provided by innovative small-cap companies.
Risk focused
Actively minimize un-analyzable factor risks and allow well understood idiosyncratic risk to drive returns.
Broad breadth of experience and expertise
- Portfolio management team with expertise and experience in international equity, emerging markets equity, domestic equity, and multi-asset investing.
Conviction
- 50 to 70 stocks of companies that enter the portfolio after a rigorous research process conducted by our team of global industry experts and portfolio managers.
Investment roadmap
- Each individual investment is purchased with a plan of execution: Expectations for financial metrics, valuation to guide position size, and discipline surrounding this plan.
The team conducts research through a bottom-up process, relying on the research of the portfolio managers and our team of investment analysts. Team-driven fundamental research is at the heart of our process.
Idea generation:
Discover potential investments with emphasis on quality business models and liquidity.
Research:
- Qualitative research: Competitive advantages, strong leadership, and end-market deman
- Financial metric hurdles: Durable and growing return on invested capital (ROIC) and return on capital employed (ROCE), durable and growing earnings per share (EPS) and cash flow, and a strong balance sheet
- Valuation: Inject discipline by adhering to a valuation glidepath that informs buy/sell decisions and position sizing
Portfolio and risk management:
50 to 70 high conviction stocks managed with attention to risk.
For more information on our equity capabilities
Risks
The value of the portfolio may fall as well as rise, and you may not receive back the amount invested.
As a class, equities carry higher risks than bonds or money market instruments.
Because the strategy expects to hold a concentrated portfolio of a limited number of securities, the strategy’s risk may be increased because each investment has a greater effect on the strategy’s overall performance. We maintain a diversified portfolio representing a number of different industries, which helps to minimise the impact that any one industry could have on the portfolio.
International investments entail risks including fluctuation in currency values, differences in accounting principles, or economic or political instability. Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility, lower trading volume, and higher risk of market closures. In many emerging markets, there is substantially less publicly available information and the available information may be incomplete or misleading. Legal claims are generally more difficult to pursue.
IBOR risk is the risk that changes related to the use of the London interbank offered rate (LIBOR) or similar rates (such as EONIA) could have adverse impacts on financial instruments that reference these rates. The abandonment of these rates and transition to alternative rates could affect the value and liquidity of instruments that reference them and could affect investment strategy performance.
The disruptions caused by natural disasters, pandemics, or similar events could prevent the Strategy from executing advantageous investment decisions in a timely manner and could negatively impact the Strategy’s ability to achieve its investment objective and the value of the Strategy’s investments.
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