Equity markets offer a diverse way to meet a number of investor objectives. Global equity markets are vast, with a huge variety of quoted companies that span industries and countries around the world.
At Royal London Asset Management, we help our clients navigate these complex markets. Our team covers an investment universe of over 5,000 companies and we have an array of different equity portfolio propositions for clients. In a world of low returns, it is our task to identify the choice investment opportunities where capital can best be deployed.
Our experienced team has a deep knowledge of equity markets, through both upturns and downturns. Over half of our portfolio managers have in excess of 20 years’ experience actively managing client assets. With around £59.2 billion of assets under management (as at 30 June 2023, subject to rounding), we have significant access to senior company management.
We have teams covering global equities, UK equities, sustainable strategies and passive funds. We have invested significantly in resources that can support these teams, both in terms of technology and people. Perhaps the best example of this is our Responsible Investment team, which provides additional environmental, social and governance insights and analysis to add to research done within the teams.
Our approach is to focus on having a strong platform on which to build strong capabilities in three areas: investment insights into individual stock opportunities; responsible investment, including Environmental, Social & Governance analysis and Sustainability analysis; and portfolio implementation, including quantitative tools and risk management infrastructure.
Within the agreed parameters, our fund managers are then responsible for their own investment decisions and can back their own high conviction approach. We believe that blending a strong and powerful platform, with nimble and empowered fund managers, is the best way to achieve our clients’ investment objectives.
While there is significant variation in underlying team processes, there is a common approach across teams based on bottom-up stock selection, underpinned by:
- Focus on cashflow ahead of accounting data
- Strong balance sheets
- Long-term quality bias
- ESG as relevant factors in investment decision-making, especially governance
- Not being benchmark constrained
We believe that this approach gives us investment teams that are nimble and autonomous, rather than solitary and unsupported.
Our fund range
With our diverse range of equity investment funds, we’re confident that investors will be able to find the funds that match their needs and risk appetite.
We cover domestic markets with our UK equity funds; we also cover Europe and the US, as well as Asia and emerging markets. Our global funds offer carefully selected stocks from across the global markets.
We manage both widely diversified and more concentrated portfolios using a process developed and refined over 20 years that measures, compares and values individual companies across different countries and sectors. The team exploits inefficiencies in areas such as different accounting methods and market short-termism to create portfolios of companies with strong shareholder wealth characteristics.
UK income funds
There is a long tradition of UK equity income investing at Royal London Asset Management, and an established record of performance. The team focuses on business models, balance sheet strength and cash generation to assess companies' abilities to both grow and pay out dividends.
UK alpha funds
The team manages a number of concentrated portfolios with an emphasis on faster growing small and medium sized UK companies. The team aim to benefit from the reduced coverage of these companies and the insights that in-house, focused research can provide.
Our sustainable fund range focuses on companies that we believe will make a positive impact on society. Further details on the funds, ranging from 100% equities to 100% fixed income, can be found in the sustainable investing section of our website.
We believe that there is a place for passive index funds in a portfolio, and these funds form part of our equities offering as this can be a cost-effective way of investing in large, liquid and mature markets.