The portfolio holds 20–40 companies with a consistent track record of high and sustainable returns. We consider portfolio construction with equal emphasis to the research process, employing the same high-quality data. Enhanced portfolio risk analytics are an important aspect to help us in achieving good fundamentally-driven portfolio diversification. sector and country exposures are of less relevance in comparison to stock weightings and ensuring the right combination of attributes are reflected to deliver our required investment outcome.
In building a diversified portfolio, we look at the portfolio’s overall exposure to;
- Long-term thematics
- Company classification
- Geographic revenue and profit
- Industry lifecycles
- End user exposure
||US Long-Term Unconstrained
||Unconstrained (MSCI USA used for performance comparison only)
||Long-term capital appreciation
||Mid- and Large-Cap
|Number of stocks
|Maximum active stock weight
||< 25% per annum
||1 September 1983*
The characteristics shown are guidelines only and not hard limits.
* Moved from a benchmark relative North American equity strategy to an unconstrained US equity strategy on 20 December 2019.