While equities have historically produced strong long-term returns, they also tend to be volatile. This is why it’s important to be clear about your investment objectives, time horizon and risk tolerance before investing. And also why it’s crucial to employ an experienced investment manager.
Benefits of investing in equities
Why an active approach matters
Our approach to equity investing
Investing in equities has a number of potential benefits:
Long-term capital growth
Opportunities for both income and growth
Increasing focus in sustainability
We believe experienced active investment managers, who take the time to analyse and select individual stocks, will do better over the long-term than index funds that invest passively and indiscriminately in the market as a whole.
We therefore believe that an active approach is more likely to provide a better return and to help you achieve your investment objectives.
Our investment managers are specialist stock pickers and are supported by research teams.
We are not tied to any one particular style or school of investing. This is because experience shows there is no single approach that works for all markets at all times.
As they aren’t constrained by a single investment approach, our investment teams have the freedom to uncover the most compelling investment opportunities from their markets in the way that they think will work best.
“We do not aspire to cover every market. Instead our resources are focused where we believe we have a real competitive advantage and can deliver the results our clients expect.”
Investing for a better future
Responsibility has long been central to our company, which is why we incorporate environmental, social and governance (ESG) criteria into all our investment processes – not least for our equity strategies.
Integrate ESG factors into all investments processes
Engage with companies and goverments
Exercise voting rights
Act as stewards of responsible investing
Be transparent with clients on EGS criteria
What are the risks?
We believe that investing in equities offers great potential for investors. There are risks however, and it’s therefore important to find an experienced manager to manage these.
Equity strategies could invest in emerging markets, where investments can be higher risk and more volatile, or have investments denominated in a foreign currency meaning a change in exchange rates could affect their value. They may also use derivatives which carry similar risks, or use leverage. Investments are subject to the risk of material losses resulting from human error, systems failures or the incorrect valuation of the underlying securities.
Past performance is not a guide to future performance. The value and income of an investment can fall as well as rise and you may not get back the amount originally invested.
WAYS TO INVEST
Emerging Market Equities
We believe that investors focused on long-term growth should capture the enormous economic potential of emerging markets.
Our range of global, regional and country-specific emerging market equities strategies offers investors the potential for investment growth that outpaces more developed markets, as well as income and portfolio diversification.
We believe that hedge fund strategies can offer valuable benefits to equity investors. They have the potential to outperform the broader market, diversify portfolios and reduce risk.
We offer two types of hedge fund equities strategies: market neutral and directional.
Equity market neutral
Our market neutral strategies are hedged to remove market exposure and focus on extracting performance from individual equities. We manage two strategies, one focused on Europe, and one on Asia. Both strategies seek to achieve attractive risk-adjusted returns with low correlation to broader equity markets.
Our equity directional strategies aim to achieve long-term capital growth and to protect capital in down markets. They are long/short strategies but, unlike our market neutral strategies, do not aim to reduce all exposure to the market. We offer three strategies, focusing on: Europe, Asia as well as a global strategy.
Whilst we believe in active management, being client-led we offer a range of equity index funds since 1986, covering both developed and emerging equity markets.