Thinking differently in global equities

Peter Rutter, Head of Global Equities

27 March 2017

Global equities present a vast opportunity set, and for investment managers, filtering the spectrum of investment opportunities down to portfolio size is the first challenge. There are many ways in which to break down the global investment universe, and common methods include market cap size, industry or geography. Our approach to managing global equities is distinctive and efficient: we use specially designed algorithms to slot all companies into the various stages of our Life Cycle framework. Rather than adopt more broadly used and, to an extent, index-influenced systems, as a basis for our global equity fund, we have devised what we believe to be a more insightful, more logical and ultimately, more successful, approach. 

Our aim is to identify the strongest companies at every stage. It is not just about looking for those companies in the early ‘accelerating’ stages of development, or about avoiding mature companies that are seeking a turnaround. We look for specific attributes in every segment, and our Life Cycle framework enables us to ask the right questions at the right time. It is a universal and enduring concept, and applies to every company as it progresses through cycles of innovation, growth, competition and maturity. 

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.