Our Equity Income Unconstrained Fund has the flexibility to invest across the entire market, choosing stocks irrespective of sector, style characteristics or market capitalisation.
This frees us from any benchmark or index constraints, and means we only invest in the companies in which we truly believe. It also allows us to take meaningful positions in our best ideas - a pure expression of active, high-conviction investing. The excellent long-term performance of the Fund is testament to this process.
High conviction, not high risk
Our approach means we don't have to hold a stock just because it is in an index or benchmark. This allows us to actively avoid many of the low-growth blue-chip stalwarts found in the FTSE 100 Index. Furthermore, by constructing the portfolio on a benchmark-agnostic, best-ideas basis, risk management is informed by the opportunities we have identified rather than via the risk profile of the index itself.
Generating a superior income
Unconstrained investing is well-suited to a UK equity income mandate. Leveraging a 13-strong UK equity team and full market coverage, we are able to cast the net wide for companies in which to invest. This includes the constituents of the FTSE 250 Index which, over the last 29 years, have collectively delivered a rate of dividend growth significantly in excess of the FTSE 100 Index.* The ability to identify and capture opportunities across the full breadth of the market also means we can achieve a more diversified source of income. This includes companies that have the potential to grow dividends quickly, high dividend-paying firms and those that may pay a special dividend.
We believe it is these characteristics combined that make unconstrained investing such a compelling proposition over the longer term.
"Our unconstrained approach gives us the freedom to express deep, stock-level insights to the fullest possible extent without consideration for potentially inhibiting benchmark constraints."
*Source: Data Stream & Standard Life Investments, 1 October 2016
High conviction, not high risk
Our approach means we don't have to hold a stock just because it is in an index or benchmark. This allows us to actively avoid many of the low-growth blue-chip stalwarts found in the FTSE 100 Index. Furthermore, by constructing the portfolio on a benchmark-agnostic, best-ideas basis, risk management is informed by the opportunities we have identified rather than via the risk profile of the index itself.
Generating a superior income
Unconstrained investing is well-suited to a UK equity income mandate. Leveraging a 13-strong UK equity team and full market coverage, we are able to cast the net wide for companies in which to invest. This includes the constituents of the FTSE 250 Index which, over the last 29 years, have collectively delivered a rate of dividend growth significantly in excess of the FTSE 100 Index.* The ability to identify and capture opportunities across the full breadth of the market also means we can achieve a more diversified source of income. This includes companies that have the potential to grow dividends quickly, high dividend-paying firms and those that may pay a special dividend.
We believe it is these characteristics combined that make unconstrained investing such a compelling proposition over the longer term.
"Our unconstrained approach gives us the freedom to express deep, stock-level insights to the fullest possible extent without consideration for potentially inhibiting benchmark constraints."
*Source: Data Stream & Standard Life Investments, 1 October 2016
