Our investment philosophy and style are founded on the principle of real return investing, thereby aligning our investment principals with what our clients are seeking to achieve: to protect and grow the purchasing power of their capital over the long term.
We aim to find companies where structural tailwinds are creating long-term demand for their products or services. While economic cycles are almost impossible to predict, structural demand can be both long-term in nature and relatively insulated from the economic cycle. Indeed, companies that benefit from structural demand should be able to consistently grow their earnings and cash flow per share over a multi-year period, irrespective of the economic environment.
Our investment process therefore focuses on identifying companies with sustainable and predictable business models and cash flow generation. This sustainable approach to investment means we incorporate ESG factors into all investment decisions (through our detailed research and ongoing monitoring of companies), to understand the long-term drivers of success and potential risks in order to generate sustainable long-term returns.
We do this by investing globally on an unconstrained basis (i.e. with no reference to an index or benchmark) in a portfolio of directly invested equities, bonds and cash.