UK investors have historically shunned offshore funds as being vehicles for tax avoidance, existing in an alternative regulatory regime, or simply for being unavailable – but today, all of that has changed.
Following the global financial crisis, interest rates and bond yields saw investors broaden their demand for income by increasingly turning to equities – yet these same investors are reticent to broaden their equity search beyond their domestic market.
Equity investors want to have their cake and eat it, demanding ever-more sophistication from an increasingly selective list of funds, which gives unconstrained investing greater prominence in their hunt for the best possible risk-adjusted returns.
The global universe of equity stocks was once thought to be too vast to research properly - but it is more easily accessible today.
Welcome to our 'Insight into global equity investing', a detailed analysis of the opportunities and ways of avoiding potential pitfalls around this asset class in 2016.
QE and the ‘taper tantrum’ of 2013 raised concerns among Standard Life Investments’ emerging market debt team, causing them to turn negative on countries with a twin deficit economy.
Kevin Troup, Global Equity Income Fund manager, along with colleagues from the regional equity teams subsequently had a number of conversations with competitors, peers and suppliers from the US to Japan, to better understand what the rest of the market did not.
A number of valuable insights from members of the global equity team, in the US, Asia and Europe, provided a depth of knowledge to corroborate a stock idea with its own focus on change.
Collaboration across regional equity teams identified Ryanair as an investment opportunity that the market itself did not.
The fund aims to provide long term growth by investing in a diversified portfolio of global equity assets. The investment team will maintain a diverse asset mix at country, sector and stock level, with the regional, country and sector weightings within the portfolio being a by-product of the underlying stock exposure.
The fund aims to provide long term growth by investing predominantly in the shares of smaller companies listed on the global stock markets.
Demand for income is on the up while supply is going in the opposite direction so where can you go to find the yields you need and keep the capital your client has worked so hard to earn?