Core/Value

Core/Value portfolios are managed according to our price to intrinsic value investment philosophy. Our long history of managing assets with this investment philosophy within a globally integrated platform has enabled us to become one of the world’s leading asset managers.

Investment philosophy

Our investment research focuses on identifying discrepancies between our estimates of a security's intrinsic value and its observed market price. For each stock under our analysis, we discount to their present value all future cash flows that we believe will accrue to an investor, incorporating our analysts' considerations of company management, competitive advantage and each company’s core competencies. These value estimates are then compared to current market prices and ranked against the other stocks in our valuation universe.

Investment research

We view research as the heart of everything we do and, as such, have made the role of analyst a career position. Our analysts, located worldwide, often have experience working for companies in the sectors they cover. They dig deep to uncover information about the companies they follow. They tap into non-conventional sources of information such as retired industry executives, industry trade groups, consultants and academics. Their goal is to determine aspects of a company’s future that are not yet factored into the stock price. Our analysts are held directly accountable for their ability to differentiate between outperforming and underperforming stocks over time.

Portfolio construction

Portfolios are constructed by selecting from stocks that rank as attractive opportunities on a price to intrinsic value basis, with consideration given to market sensitivity, common factor exposures and industry weightings. All securities added to a portfolio are first viewed through our risk management system. This is to ensure the portfolios contain intended and compensated risks.

Corporate governance

Where clients have delegated to us the discretion to exercise the voting rights for shares they beneficially own, we have a fiduciary duty to vote shares in the clients’ best interest. Our Global Corporate Governance Principles outline our approach to corporate governance and to the exercise of voting rights.