Global Quality Equity
Investment objective
Global Quality is a more systematic form of growth investing, we identify quality companies that are profitable, offer stable growth and are financially strong while avoiding the disappointment associated with glamour growth stocks. The strategy creates significant strategic diversification from longer run Value portfolios and enables investors to construct a more balanced equity portfolio. Global Quality targets a long run return of 2 to 3% per annum (gross of fees) above the MSCI World Index (NDR) above global indices over the full economic cycle.
Key features
- Higher risk adjusted returns: Global Quality offers long-term returns in excess of the global market but with lower risk. High quality stocks tend to outperform when risk aversion is high such as in economic downturns and stressful market environments. These are times when longer run strategies can struggle to add value.
- An unconstrained approach: Unconstrained bottom-up regional and sector allocations are the result of analyzing Quality at an individual stock level. This leads to a more efficient portfolio and consequently higher long run returns.
- A highly diversified portfolio: We maximize the opportunity by systematically analyzing 5,000 stocks globally and minimize stock risk by constructing a highly diversified portfolio that avoids the return drag typically associated with the inefficiency of market-cap weighting.
- An alternative to Value: Global Quality invests in very different stocks compared with those associated with Value based strategies, offering strategic diversification benefits from traditional investment approaches.
Investment options
- Separate accounts*
- Institutional-type vehicles*
- Mutual Fund