Global Equity Diversified Fund


Fund overview

The Fund aims for modest outperformance of the global equity index through a portfolio which is diversified by country, sector and Life Cycle. The Fund typically has 175-225 holdings and a low tracking error of 1-2%. The Fund provides investors access to a lower relative-risk, active global equity solution.

Fund manager

The Fund is managed by Head of Global Equities Peter Rutter, along with Fund Managers Will Kenney and James Clarke.

Peter Rutter is Head of Global Equities and a Senior Portfolio Manager with over 15 years of experience. Prior to joining Royal London Asset Management, Peter was Head of Global Equities at Waverton Investment Management, where he worked alongside Kenney and Clarke under the same team construct. Prior to this, Peter was a partner at IronBridge Capital Management for six years, where he co-managed the £3bn IronBridge Global Select equity strategy delivering a successful 5-year performance track record. Previously, he worked closely with Kenney in the global equities team at Deutsche Asset Management.  Peter graduated from Christ’s College, Cambridge University, with a starred double first class degree in Geography, is a CFA charterholder and a chartered management accountant (CGMA). 

Will Kenney is a Senior Portfolio Manager with over 18 years of experience. Prior to joining Royal London Asset Management, Will was a Portfolio Manager at Waverton Investment Management, where he worked alongside Rutter and Clarke under the same team construct. Prior to this, Will had previously been a partner and portfolio manager at Spencer House Capital Management (SHCM). Prior to joining SHCM in 2006, Will worked at Deutsche Asset Management for seven years as a member of the global equity team which included Clarke and Rutter. He graduated from Durham University with an honours degree in Economics and Politics and is a CFA charterholder. 

James Clarke is a Senior Portfolio Manager with over 17 years of experience. Prior to joining Royal London Asset Management, James was a Portfolio Manager at Waverton Investment Management, where he worked alongside Kenney and Rutter under the same team construct. Prior to this, James was a partner at IronBridge Capital Management for six years, where he co-managed the £3bn IronBridge Global Equity strategy with Rutter, delivering a successful performance track record. Previously, he worked closely with Kenney on the global equities team at Deutsche Asset Management. James graduated from Warwick University with an honours degree in Economics and is a CFA charterholder. 

Investment approach

The investment philosophy of our Global Equity Team has been utilised since the early 2000s. It seeks to deliver favourable performance through superior stock-picking, a differentiated investment process and proprietary technology.

The team’s Economic Return Framework and Corporate Life Cycle Concept form the basis of their approach and provide a high quality set of data that can be used to identify and evaluate companies which are both creating wealth for equity shareholders and that are fundamentally undervalued. They believe that corporate returns on productive capital and growth tend to progress along a life cycle that moves companies through the following stages:

  • Accelerating – heavy investment to promote growth
  • Compounding – a potential “sweet spot” for global equity investing characterised by high returns and rapid growth
  • Slowing & maturing – Returns defended against increasing competition
  • Mature - in the long-run most businesses become mature, earning productive returns around their cost of capital
  • Turnaround – Restructuring to improve returns and avoid failure

The team uses the Shareholder Wealth Creation Test to identify companies that are creating good shareholder wealth. The drivers for this are very different depending on what stage of the cycle the company is in. These companies then progress to the Fundamental Analysis and Valuation stage of the process, during which the team performs more detailed fundamental analysis. The aim is to identify companies with the strongest evidence of long-term wealth creation and then value them. The companies with the most attractive combination of wealth creation and valuation form the idea pool from which the portfolios are constructed.

Product Risk Warning

Past performance is not a guide to future performance. 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. For funds that use derivatives, their use may be beneficial, however, they also involve specific risks. Derivatives may alter the economic exposure of a fund over time, causing it to deviate from the performance of the broader market. Investments in emerging markets (such as the less developed markets of Asia, Africa, South America, and Eastern Europe) may be more volatile than investments in more developed markets (such as those of Western Europe, the US, and Japan). Some of these markets may have relatively unstable governments, economies based on only a few industries and securities markets that trade only a limited number of securities. Many emerging markets do not have well developed regulatory systems and disclosure standards may be less stringent than those of developed markets.

Global equities masterclass

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