How we manage Global Equities

Philosophy

Our approach to investing in global equities is based on the firm belief that a portfolio of very high quality businesses will deliver above average returns over the medium to long term. With this in mind, we seek to identify superior companies with sustainable competitive advantages and an ability to consistently generate above average returns on capital.

Broadly speaking, we invest in companies based on their investment merit as determined by their prospects, quality and valuations.

Investment Approach

Company quality will ultimately drive share prices over time, and as such we aim to identify leaders within their respective sectors. We define a ‘high quality company’ as one with an attractive combination of:

  • Quality Management
  • Consistent Profitability
  • Franchise Strength
  • Financial Strength
  • Favourable Business Drivers

We employ a “bottom-up” stock selection approach to investing in global equities. We consider the MSCI Developed and Emerging Markets as our starting universe and then methodically shrink our potential investment universe by applying strict quantitative criteria. Over time we have found that this approach has had the dual benefit of:

a) eliminating poor quality companies from investment consideration, and
b) focusing our research efforts on a smaller & higher quality universe of companies.
 

The investment team undertake extensive company research across the globe. Over the past 4 years, we have conducted over 1,500 company meetings. We have generated over 9,000 company research posts on our internal research database.