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How can global equity investments benefit from the corporate lifecycle concept?

What are the main goals of the Royal London Global Equity Select Fund?

The main goal is to improve performance across multiple market environments, with performance driven by differentiated and genuine stock selection, not investment style. We are relatively style-neutral from a sense of traditional style-there are some slight tilts around our valuation discipline and the form of quality we seek for stocks.

How can I improve performance in multiple environments?

We call it triple diversity. The life cycle of sectors, regions, and especially companies. With triple diversification and unique tools built around it, you can build a portfolio where stock selection itself is the main risk exposure, not the wave of sectors, regions or lifecycles.

Our lifecycle framework maps all companies in the investment universe into one of five categories, depending on where they are in the company’s lifecycle. We at both portfolio diversification and stock picking.

How does it help you choose your stock?

All the basic factors that determine whether a company is profitable depend on the stages of its life cycle. Early-stage accelerator companies may need to look at the destructive nature of their accelerator business, incremental cash burns, and the size of the growing market.

In contrast, the most mature or turnaround phase of the life cycle may focus on how much an asset can be sold by a company. The scale of the cost reduction program. How can I repair my balance sheet? As a team, we have 20 years of experience in what we need to offer in each lifecycle category.

How do you apply lifecycle insights throughout the investment process?

You can think of it as a fairly automated data management using Lifecycle Insights, then a deeper qualitative analysis phase specific to Lifecycle, and then a unique portfolio building and risk management toolset that also uses Lifecycle. increase. But in reality, they all work together in the ongoing flow of the investment team.

click here To learn more about the global equity team’s outlook and how the various possible scenarios affect investment strategies and styles.

Professional clients only. Not suitable for retail clients. Unless otherwise stated, the expressed views are those of the contributor on the date of issue and are subject to change and are not investment advice.

Investment risk

Past performance is not a guide to future performance. The value of investments and the income from them can fluctuate and are not guaranteed. Investors may not be able to recoup their investment.

Concentration risk: The price of a fund that invests in a reduced number of holdings, sectors, or geographic areas can be more volatile as it can be more affected by events that affect the stock market.

Counterparty risk: Bankruptcy of an institution that provides services such as asset custody or acting as a counterparty to derivatives and other commodities can expose the fund to financial losses.

Efficient Portfolio Management (EPM) Method: The fund may engage in EPM methods, including holding derivative products. Although intended to mitigate risk, the use of these products may expose the fund to price fluctuations.

Emerging Market Risks: Investing in emerging markets may offer greater reward potential, but with high volatility, low liquidity, currency fluctuations, adverse effects of social, political and economic instability, weak supervisory structures and accounting. There is greater risk due to the possibility of standards.

Exchange risk: Fluctuations in exchange rates can affect the value of this investment.

Liquidity risk: In a harsh market environment, it is difficult to assess the value of a particular fund investment, making it difficult to sell or selling at a fair price, which can result in unpredictable declines in holding value. I have.

Important information

Professional clients only. Not suitable for retail clients.

This is a financial promotion, not investment advice. The expressed views are the author’s views on the date of issue and are subject to change and are not investment advice unless otherwise stated.

The Royal London Global Equity Select Fund is a sub-fund of the Royal London Equity Funds ICVC. It is an open-ended investment company with variable capital with separate responsibilities between sub-funds, founded in England and Wales under registration number IC000807. The Certified Corporate Director (ACD) is the Royal London Unit Trust Managers Limited, approved and regulated by the Financial Conduct Authority, and the company reference number is 144037. For more information on the risks of a fund or investment, please refer to the prospectus or major investors.Available from Information Documents (KIID) and related fund information pages www.rlam.co.uk..

Published in October 2021 by Royal London Asset Management Limited, 55 Gracechurch Street, London, EC3V0RL. Approved and regulated by the Financial Conduct Authority, reference number 141665. It is a subsidiary of the Royal London Mutual Insurance Association.

How can global equity investments benefit from the corporate lifecycle concept?

Source link How can global equity investments benefit from the corporate lifecycle concept?

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