About European Long-Term Unconstrained
The strategy is designed for investors seeking sustainable long-term outperformance of the market from a high conviction portfolio, backed by proprietary and systematic fundamental research.
The strategy’s portfolio of 20-40 quality growth companies offer sustainable growth and resilience to economic uncertainty.
Our three long-term mega trends of demographic change, the future of technology and resource scarcity, guide our proprietary fundamental research and portfolio construction. This allows us to invest on multi-decade investment horizon to meet client requirements for sustainable long-term returns.
Proprietary fundamental research can identify long-term value-creating companies undervalued by the market. We elaborate on this below:
- The market is myopic and fades returns of quality companies too fast
- Our proprietary fundamental research framework is able to identify these companies
- Value creating companies compound returns over the long-term
We consider portfolio construction with equal importance to the research process, employing the same high-quality data from the research process. Here we focus on five areas – long-term thematics, company classifications, geographic revenue/profit, end user markets and industry lifecycles. These aid our understanding of the portfolio’s diversity, effectively manage risk and ensure we are positioned to capture long-term growth.
| Portfolio characteristics | European Long-Term Unconstrained |
|---|---|
| Benchmark | Unconstrained |
| Performance objective | Long-term capital appreciation |
| Market capitalisation | Mid- and Large-Cap |
| Forecast tracking error | N/A |
| Sector/country allocations | Unconstrained |
| Number of stocks | 20-40 |
| Maximum active stock weight | 10% |
| Portfolio turnover | < 25% per annum |
| Inception | November 2018 |
Podcast: Anatomy of the market recovery
In terms of contributors to performance across the fund since the start of the year, healthcare and industrials, in particular, have been positive contributors.
Zehrid Osmani
Head of Global Long-Term Unconstrained
Zehrid Osmani
- Job title
- Head of Global Long-Term Unconstrained
- Experience
- 23 years
Ken Hughes
- Job title
- Portfolio Manager
- Experience
- 27 years
Amanda Whitecross
- Job title
- Portfolio Manager
- Experience
- 26 years
Yulia Hofstede
- Job title
- Portfolio Manager
- Experience
- 11 years
Robbie McNab
- Job title
- Portfolio Manager
- Experience
- 13 years
Roberto Venanzio
- Job title
- Investment Analyst
- Experience
- 4 years
Sam Cottrell
- Job title
- Portfolio Manager, Global Long-Term Unconstrained
- Experience
- 6 years
Zoe Hutchison
- Job title
- Investment Analyst
- Experience
- 5 years
Jonathan Regan
- Job title
- Investment Analyst
- Experience
- 5 years
We focus on sustainable businesses with good compounding characteristics, backed by low disruption risk, strong pricing power, good ESG credentials and high management quality.
How to invest
We offer investors access to our strategies through a segregated account or a range of pooled vehicles.
Please contact us to discuss the most appropriate investment to meet your requirements.
How to invest
Martin Currie is a Specialist Investment Manager of Franklin Resources Inc, operating as Franklin Templeton.
Franklin Templeton is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Franklin Templeton website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
How to invest
Martin Currie is a ‘Specialist Investment Manager’ within the Franklin Templeton group.
Franklin Templeton is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Franklin Templeton website.
Related insights
-
Aftermath - EU Green Deal
EU policymakers appear to remain committed to a green stimulus, but will COVID-19 and the massive stimulus packages deployed to deal with it have a direct and adverse impact on the timing of the execution of the Green Deal?
- Date published
- 24 Aug 2020
- Tag
- Aftermath: Post Covid-19
-
Our Global Long-Term Unconstrained ESG Integration
In the paper, Zed explains how ESG is integrated throughout the investment process. From determining which stocks progress to in-depth fundamental research, the usage of their proprietary ESG risk scoring system and finally how analysis of ESG exposures helps determines the overall portfolio shape.
- Date published
- 20 Aug 2020
- Tag
- Global Long-Term Unconstrained
-
Stewardship Matters - Edition 1
Introducing our new update on the Stewardship and ESG activities that we are undertaking on clients’ behalf.
- Date published
- 18 Aug 2020
- Tag
- Stewardship & ESG
About European Long-Term Unconstrained
The strategy is designed for investors seeking sustainable long-term outperformance of the market from a high conviction portfolio, backed by proprietary and systematic fundamental research.
The strategy’s portfolio of 20-40 quality growth companies offer sustainable growth and resilience to economic uncertainty.
Our three long-term mega trends of demographic change, the future of technology and resource scarcity, guide our proprietary fundamental research and portfolio construction. This allows us to invest on multi-decade investment horizon to meet client requirements for sustainable long-term returns.
Proprietary fundamental research can identify long-term value-creating companies undervalued by the market. We elaborate on this below:
- The market is myopic and fades returns of quality companies too fast
- Our proprietary fundamental research framework is able to identify these companies
- Value creating companies compound returns over the long-term
We consider portfolio construction with equal importance to the research process, employing the same high-quality data from the research process. Here we focus on five areas – long-term thematics, company classifications, geographic revenue/profit, end user markets and industry lifecycles. These aid our understanding of the portfolio’s diversity, effectively manage risk and ensure we are positioned to capture long-term growth.
| Portfolio characteristics | European Long-Term Unconstrained |
|---|---|
| Benchmark | Unconstrained |
| Performance objective | Long-term capital appreciation |
| Market capitalisation | Mid- and Large-Cap |
| Forecast tracking error | N/A |
| Sector/country allocations | Unconstrained |
| Number of stocks | 20-40 |
| Maximum active stock weight | 10% |
| Portfolio turnover | < 25% per annum |
| Inception | November 2018 |
European Long-Term Unconstrained - Focused on the long term
We look for long-term, sustainable alpha generation from a concentrated, high-conviction portfolio of innovative, global leading European companies.
Zehrid Osmani
Head of Global Long-Term Unconstrained
Script
Hello, it's Zehrid Osmani, Head of Global Long-Term Unconstrained Equities at Martin Currie, and Portfolio Manager of the European Long-Term Unconstrained funds. We manage high conviction best ideas funds of 20 to 30 stocks. We have a continental European Fund and a pan-European Fund, depending on investor interest.
Our approach across these Funds is very similar, the investment philosophy is the same. We have three important pillars that distinguish our investment philosophy. Firstly, we are long-term unconstrained and by long-term we mean 5 to 10 years’ time horizon. By unconstrained, we mean focusing on best ideas, without worrying about index exposure. Why should we put our clients’ money in some parts of the index that we don’t think will generate value for shareholders in the long-term? Instead we focus on finding the 20 to 30 best ideas that we harness for our client’s benefit. We typically buy sustainable quality growth companies, and the way we find those companies is with fundamental research that we do systematically. And as part of that systematic approach, a very structured approach to assessing risks across industry, company, ESG and portfolio risks that these companies would bring to the portfolios.
ESG is integral to our fundamental research. Our team that does the fundamental research also does the ESG analysis. We have a strong expertise in ESG at Martin Currie, developed over more than 10 years. We have recently won the top rating of triple A+ by the PRI for the 4th year in a row, which highlights the extent of our expertise. We have put in place in a proprietary ESG framework to analyse all the companies that we invest in. We have over 50 parameters on governance and sustainability and by which we assess the ESG risk elements of companies that we invest in. The typical type of companies that we buy operate in industries with high barriers to entry, and tend to have dominant market positions, they have strong pricing power, low disruption risk, they offer attractive structural growth prospects, they generate high return on invested capital, offer strong compounding cashflows, and have solid balance sheets, they also have good quality management and a good governance and sustainability, and above all they have attractive valuation.
We have a structured framework as part of our analytical approach to analysing companies. It’s based on three mega trends that we analyse to ensure that we capture the best opportunities for the long-term. The aim is to look into the future rather than look backwards into the rear view mirror, and that ensures that we pick the best ideas for our shareholders. We have three megatrends which are, demographic change, future of technology and resource scarcity, and within that there are various themes we assess each stock by to ensure that we capture all the most attractive opportunities out there.
Culture is important in our team, we are inclusive, candid, focused on learning and improving, but above all we have a passion to deliver the best outcome for our shareholders through this approach of finding the 20 to 30 best ideas in the market and delivering them in a portfolio that is high conviction, concentrated yet diversified at the same time.
Thank you for listening, it's Zehrid Osmani, Portfolio Manager of the European Long-Term Unconstrained funds at Martin Currie.
