Core Equity
A research-driven strategy that seeks to generate alpha through independent, fundamental research with disciplined management of valuation and portfolio risk
Portfolio includes:
- high quality companies that exhibit industry leading organic growth
- top quartile financial strength
- management track record of success
Actively managed portfolio:
- provides downside valuation support
- opportunity driven by “advantaged” earnings growth
- diversification across industries
Key Risks
Market Risk: The risk of a change in the value of a position as a result of underlying market factors, including among other things, the overall performance of companies and the market perception of the global economy.
Liquidity Risk: The risk that the portfolio may be unable to sell an investment readily at its fair market value.
Counterparty Risk: The risk that the portfolio may be unable to sell an investment readily at its fair market value.
Operational Risk: The risk of direct or indirect loss resulting from inadequate or failed processes, people and systems including those relating to the safekeeping of assets or from external events.
Currency Risk: Investments in a currency other than the base currency of the portfolio are exposed to currency risk. Fluctuations in exchange rates may affect the return on investment. If the currency of the portfolio is different from your local currency, then you should be aware that due to exchange rate fluctuations the performance may increase or decrease if converted into your local currency.
Overview
Investment Philosophy
In our view, a disciplined, research-driven and valuation-sensitive approach with a long-term perspective can generate attractive long-term, risk-adjusted returns.
Fundamentals-based, Bottom-up Research Process
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Bottom-up and Top-down Valuation Discipline
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Disciplined Risk Management
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Investment Process
Company Analysis
Detailed company research culls out well-positioned businesses with secular advantages and potential to grow long-term shareholder value.
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Identifying “Best In Class” Companies
Qualifications:
- Advantaged secular growth potential
- Top-quartile financial strength
- Industry-leading ROIC through cycles
- Proven management
- Strong and sustainable customer value proposition
- Sustainable business practices and competitive advantage
- Shareholder-aligned financial incentives
Disciplined Risk Management
We believe the biggest risk in investing is not knowing what you own.
- Understand and control company-specific business risk
- Bottom-up and top-down management of valuation risk
- Bottom-up and top-down management of portfolio risk
- Preserve flexibility by managing liquidity
Diversification Potential
- Attractive stand-alone core investment product
- Research-driven process results in return profile that is complementary to certain other active strategies
- Return characteristics suggest portfolio may be appropriate as a satellite to complement passive strategies
