Capital at risk
Core growth
Growth comes in different forms: firms focusing on disruption, predictable steady compounders and capital allocators. Our core growth portfolios offer exposure to all three.
What are core growth’s characteristics?
The market tends to value growth categories differently. Disruptors capture opportunity and market share. Their revenues grow rapidly, but their outcomes can be broad. Steady compounders have strong defensible franchises and competitive advantages. This leads to above-average earnings growth over long periods. Capital allocators rely heavily on management’s skill in deploying capital into cyclical opportunities. Combining all three helps reduce volatility while letting us pursue our best ideas.
How do we invest in core equity growth?
For each type of growth, we focus on different measures. Sales growth and margin progression for rapid growers. Franchise strength and profitability for steady compounders. And management quality and consistency with long-term business execution for capital allocators.
Core equity growth portfolios typically hold 60 to 100 stocks. Turnover is low, typically less than 20 per cent per annum.
Core-growth strategies
China
A diversified portfolio of 40-80 of the best growth companies in China, regardless of listing location, size or weight in an index.
Emerging Markets All Cap
Our longest-standing Global Emerging Markets portfolio, targeting the world’s best Emerging Market companies with a diversified approach.
Emerging Markets ex China
Seeking to provide exposure to the best Emerging Market opportunities outside of China, an increasingly common consideration for investors.
Emerging Markets Leading Companies
A more concentrated Global Emerging Markets portfolio of 35-60 stocks. Seeking strong opportunities to own for the long term.
Global Alpha
Ambitious growth investing in exceptional companies, prioritising long-term sustainability and competitive advantages for lasting success.
International Alpha
Invest in compounders, rapid growth, cycle winners, and capital allocators for what we hope will prove a robust, opportunity-driven portfolio.
