European Equity Strategy

A high conviction, adaptable portfolio underpinned by a disciplined process.
A high conviction, adaptable portfolio underpinned by a disciplined process.

Strategy overview

The Strategy aims to provide long-term capital growth primarily through investment in European companies either listed and/or domiciled in Europe, including the UK*, or established outside of Europe but carrying out a significant portion of their business activities in Europe. We use a proprietary stock-picking approach, which is not dominated by any specific style.
Key Features
  • High conviction portfolio constructed from bottom-up stock picking (up to 70 European stocks, including the UK*)
  • Adaptable portfolio: style and size agnostic and no benchmark constraints
  • Managed using the disciplined 4Factor investment process, which combines both traditional and behavioural investment factors
  • Track record of delivering outperformance
We take a balanced approach to investing in European equities to construct a flexible and adaptable portfolio.
Ken Hsia

Investment Approach

01

We believe equity markets are inefficient due to behavioural errors made by investors.

02

We believe four key factors individually drive share prices and in combination drive long-term outperformance.

03

We believe applying a disciplined, repeatable investment approach leads to long-term alpha generation.

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General risks:

Past performance is not a reliable indicator of future results and performance targets may not be achieved; losses may be made.

Specific Risks:

Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow.

Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income.

Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.

Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.

Important information

All information is as at 31 March 2020 unless otherwise stated.

* The investment objective of the Strategy was amended on 1 December 2012 to include investment in the UK.