Global Diversified Equities
- The Global Diversified Equities investment process seeks a good relative yield in all market situations irrespective of which type of shares – value or growth shares, or small or large companies – are currently favoured by the markets.
- The process combines different sources of excess return from the equity markets: the equities in the core portfolio are selected based on companies’ economic fundamentals as well as the share valuation level and low risk. The final structure of the portfolio is also influenced by an active view of the market situation and allocation weights.
International Focus Equities
- International Focus Equities is an investment process which focuses on in-depth analysis of company fundamentals when selecting an investment target.
- The process seeks to identify companies with strong fundamentals and equities with attractive valuation levels. The process focuses on equities which, in the portfolio manager's view, are undervalued in relation to the company´s ability to generate cash flow over the long term.
- The differences between the relatively concentrated investment portfolio, constructed by the fund manager, and the comparison index can be mainly explained by stock-specific criteria rather than by issues related to sector or country breakdown.
- The Stable Equities investment process favours the shares of companies with a stable return and price trend and a moderate valuation.
- Investments are focused on companies with stable earnings growth, steadily rising dividends and strong cash flows.
- The Value investment process focuses on value equities/companies.
- The process seeks to identify and invest in undervalued equities/companies that trade at discounts to both their book value (equity per share) and earning power and that have a healthy financial position and good prospects.
- The Fundamental Equities investment process is based on qualitative and quantitative research on individual companies and sectors.
- The process is used to investigate different sectors' and companies' potential for creating added value, with the aim of identifying the companies that offer the best growth potential.
- In addition, understanding how the markets work plays a crucial role in the investment process. With this in mind, portfolio management takes advantage of research explaining investor behaviour.