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UK equity investing

A diverse and well established market

Overview

The UK equity market is a diverse and well-established investment universe, with world leading governance standards. Home to many of the world’s leading multi-national companies, it provides access to global themes and the opportunity to pursue a variety of investment strategies.

The breadth and depth of the UK market mean it features a wide array of investment opportunities. Despite the fundamental attractions of this market segment, analytical coverage beyond the UK’s large caps is relatively sparse, creating genuine opportunities for stock picking.

Active stock picking

Our team adopts a fundamental approach to stock selection focusing on idiosyncratic drivers of stocks to find good ideas across the market-cap spectrum.

Excellent company access

Our size enables significant corporate access for our fund managers to engage with senior management, which is an essential part of thorough fundamental research.

Experienced

Our fund managers have 115 years combined investment experience in managing UK equities through changing economic conditions and business cycles

ESG integration

Environmental, Social and Governance (ESG) factors are integrated into the investment process and fund managers are supported in their analysis, ESG engagements and stewardship voting by our well-resourced Responsible Investment team.

Investment approach

We split our UK equity funds into five strategies to clearly align them with our clients' objectives. While each of the strategies has a distinct approach and focus, there are some aspects of their investment objective that our team all share:

  • Focusing on bottom-up stock picking
  • Emphasis on sustainable cash generation
  • Long-term investment horizon

Our range

The Royal London UK equity fund range sits within our main suite of equity funds. Our UK equity funds split into five strategies to clearly align them with our clients' objectives: Core, Income, Unconstrained, Small and mid cap companies and Sustainable.

 

Core

Fund overview

A diverse equity fund targeting high risk-adjusted returns across multiple market environments by investing in the UK’s leading companies with strong and resilient business models, and quality management that benefit from attractive end markets. Suitable for investors seeking capital growth over the medium term (3-5 years).

Fund overview

A core multi-cap UK Equity Trust targeting high risk adjusted returns across multiple market environments by investing in companies with strong business models, and quality management that benefit from growing end markets. Suitable for investors seeking capital growth over the medium term (3-5 years).

UK Income

Fund overview

A diversified, style-agnostic income fund targeting superior risk-adjusted returns and a premium yield to the index across multiple market environments, with stock picking driving relative performance. Suitable for investors seeking a combination of income and some capital growth over the medium term (3-5 years).

Fund overview

A diversified, style-agnostic income fund targeting superior risk-adjusted returns and dividend growth across multiple market environments, with stock picking driving relative performance. Suitable for investors seeking income with some capital growth over the medium term (3-5 years).

Unconstrained

Fund overview

A UK equity fund investing across the entire market cap spectrum, targeting undervalued growth opportunities, out of favour quality companies, and special situations with potential for capital growth. Suitable for investors seeking capital growth over the medium term (3-5 years) through a diversified portfolio of stocks across the market cap spectrum.

Henry Lowson
Head of UK Alpha Equities

Henry Burrell
Fund Manager                                     

Small and mid cap companies

Fund overview

A core mid-cap strategy targeting superior risk adjusted returns, providing investors with exposure to an asset class that has historically generated high returns. The fund is focused on constructing liquid, diversified portfolios of attractively priced, quality growth companies. Suitable for investors seeking capital growth over the medium term (3-5 years) through a highly diversified and liquid fund of medium sized companies.

 

 

Henry Lowson
Head of UK Alpha Equities

Henry Burrell
Fund Manager                         

Fund overview

A core small-cap strategy targeting superior risk adjusted returns, providing investors with exposure to an asset class that has historically generated high returns. The fund is focused on constructing liquid, diversified portfolios of attractively priced, quality growth companies. Suitable for investors seeking capital growth over the medium term (3-5 years) through a diversified fund of UK smaller companies.

Henry Lowson
Head of UK Alpha Equities

Henry Burrell
Fund Manager                                      

Sustainable

Fund overview

A core UK equity fund investing in leading companies that are deemed to make a positive contribution to society, through the products and services the companies provide as well as their standards of environmental and social management. We evaluate these factors alongside our robust financial analysis and a detailed corporate governance assessment, as we believe that good governance is an enabler of good environmental and social performance. Suitable for investors seeking capital growth over the medium term (3-5 years) through large-cap quality companies that are deemed to make a positive contribution to society.

Our team

Our UK equity team consists of six fund managers with an average of 19 years’ investment experience, supported by six equity analysts. Fund managers share company meetings and collaborate on idea generation and peer review, enhanced through the varied investment perspectives of the different strategies. The team is supported in their stewardship activities and environmental, social and governance analysis by our well-resourced 12-strong responsible investment specialists.

We strongly believe that the team’s collective working knowledge of the UK stock market is part of our competitive edge and enables the team to cover a large universe of investment opportunities.