Our actively managed large cap European equities strategies are among our most successful products and are highly rated by major global investment consultants.

Our Large cap European equities portfolios are managed by our London and Paris based team, which includes nine portfolio managers (each a dedicated sector specialist) plus a dedicated risk manager.

We run three strategies – core, high conviction and growth – all based on the same investment philosophy and process. Within these strategies we offer a range of individual portfolios designed to meet a broad range of investor requirements, but we can also tailor mandates to meet your individual needs.

EUR 11.4bn

assets under management

11

experienced portfolio managers

3

European Large Cap investment strategies

20 years

average investment experience

Investment philosophy and process

Our European equities team concentrates on its core competency of bottom-up stock selection, while minimising its portfolios’ top-down country and sector positions, relative to the benchmark.

We invest with a 3-5-year investment horizon, focusing on finding stocks with attractive long-term attributes that may have been masked by short-term noise.

Our team’s main distinguishing feature is its focus on industry structure; we look for well-structured industries with high barriers to entry and limited competition (oligopoly) – for better pricing power. We believe that leading companies in these industries are much more likely to generate attractive, sustainable investment returns over the long-term than firms in industries with greater competition.

We use the Herfindahl-Hirschman Index to determine industry concentration – a measure more commonly used by anti-trust agencies such as the US Department of Justice or the EU Competition Commission to decide on whether acquisitions or mergers will be allowed.

Once we have identified the best industries, we conduct detailed fundamental analysis on the most attractive stocks in those industries to assess whether they are worthy of investment, looking in particular at their valuation, sources of sustainable competitive advantage relative to their peers, and growth prospects.

  • High-conviction Europe, European ex-UK and Eurozone Equities

    Our high-conviction European, European ex-UK and Eurozone equities strategies provide concentrated access to what our investment team believes are the highest-potential stocks in these regions’ equity markets.

    Actively managed and benchmarked against the MSCI Europe, Europe ex-UK and EMU indices, the strategies in their current form have a 11-year track record.

    At a glance:

    • Portfolios invest in 40–50 stocks
    • Aim to outperform their benchmarks by 250–300 basis points per year measured over a full market cycle
    • Target a tracking error against their benchmarks of 3–6%.
    • Bottom-up stock selection: no active country or sector positions against the benchmark
    • Aims to invest in high-quality companies in well-structured, growing industries
    • Focuses on long-term winners rather than short-term trading opportunities
    • Strict risk management ensures risk budget is fully aligned with team’s focus on stock selection
    • Highly rated by global investment consultants
  • Europe Growth Equities

    Our Europe Growth equity strategy provides concentrated exposure to companies with sustainable long-term growth attributes and that are operating in well-structured, growing industries.

    Actively managed and benchmarked against the MSCI Europe, Europe ex-UK and EMU indices, the strategies in their current form have a 11-year track record.

    At a glance:

    • Portfolios invest in 40–60 stocks
    • Aim to outperform their benchmarks by 250–300 basis points per year measured over a full market cycle
    • Target a tracking error against their benchmarks of 3–6%.
    • Bottom-up stock selection: no active country or sector positions against the benchmark
    • Aims to invest in high-quality companies in well-structured, growing industries
    • Focuses on long-term winners rather than short-term trading opportunities
    • Strict risk management ensures risk budget is fully aligned with team’s focus on stock selection
    • Highly rated by global investment consultants
  • Core European and Eurozone Equities

    Our core European and eurozone equities strategies provide broad exposure to these regions’ equity markets.

    Actively managed and benchmarked against the MSCI Europe and EMU indices, the strategies in their current form have a 11-year track record.

    At a glance:

    • Well-diversified core European and Eurozone equity portfolios of 65–85 stocks
    • Aim to outperform their benchmarks by 100–200 basis points per year measured over a full market cycle
    • Target a tracking error against their benchmarks of 2-3%.
    • Bottom-up stock selection: no active country or sector positions against the benchmark
    • Aims to invest in high-quality companies in well-structured, growing industries
    • Focuses on long-term winners rather than short-term trading opportunities
    • Strict risk management ensures risk budget is fully aligned with team’s focus on stock selection
    • Highly rated by global investment consultants

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