Asset classes

The structure of the UK market has evolved over the last few years, owing to the surge in oil and resources stocks and slump in financials such as banks. As a result, the former sectors now comprise around 30 per cent of the FTSE All-Share index. At the same time UK companies are becoming less reliant on the domestic economy to grow their top line, with greater emphasis now being placed on gaining access to booming emerging markets. Today, well over 50 per cent of UK corporate earnings are generated overseas, with this figure rising to well over 66 per cent for firms within the blue-chip FTSE 100 Index.

This evolving dislocation between UK stock markets and the UK economy presents attractive opportunities to investors. However, to best exploit the situation it is more crucial than ever that UK equity fund managers adopt a global perspective and embrace a best-ideas approach to portfolio construction. Our fund managers do – and are prepared to back their convictions with genuinely overweight positions unconstrained by the composition of their benchmarks.

We are pragmatic, contrarian investors seeking to identify and exploit market inefficiencies; using our experience, a range of investment styles and a disciplined research process, to deliver a range of high alpha portfolios.

Source Factset, 30 April 2010