Equity Solutions

Problems

68%¹ of active equity managers have underperformed net of fees over the last 10 years.

Very few asset owners properly diversify

Making and implementing decisions in an equity portfolio takes time

Potential solutions

Identify skilled managers and have them focus only on their top ideas

Improve chances of success by creating a multi-manager structure and diversify across style, size, sector and geography

Use brand and scale to potentially reduce costs

Implementation

Only our high-conviction managers

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Custom mandates, investing only in managers' top 10 to 20 stocks

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Reducing unwanted risk factors

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= Maximize the potential outperformance of your equity allocation in all conditions

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¹ Source: AJ Bell Active and passive funds report. Data as of December 31, 2023. Past performance is not a reliable indicator of future returns.

Our approach

1. 01

   Specialist execution

   We believe it is difficult to outperform equity markets, and investors tend to be impatient when their investment managers underperform. Asset owners need diversification and patience to build a resilient portfolio. We believe you need six to 12 different skilled equity managers to prevent style, geography, sector or size factors from dominating relative returns.

2. 02

   Ideas and innovation

   We believe most equity managers do not provide a strategy comprising only their best stock ideas. We seek to avoid stock fillers that dilute value and reduce total performance, giving you access to only the top 10 to 20 best ideas of each underlying high-conviction manager. This allows to capture manager skill and avoid index hugging.

3. 03

   Value for money

   We engage with investment managers. We leverage our scale and first-mover advantage by creating new mandates and seeking to offer our investors a bespoke global equity portfolio at a competitive price.

4. 04

   Time and experience

   Our portfolio management team looks to ensure a balanced combination of versatile and skilled investment managers. We actively manage the portfolio, seeking to diversify away unintended risk such as style, sector, geography or size. This enables our high-conviction managers to do what they do best, pick stocks.