Legal & General Investment Management
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High Alpha Strategy.

The High Alpha team analyse the investment universe from the perspective of ‘owners of businesses’, not just ‘traders of shares’. Their disciplined stock selection process seeks stocks where the underlying businesses demonstrate high barriers to entry and the capability to deliver sustainable, organic growth. The team believe return on investment drives future cashflows and cashflows determine the long-term share price of a company.

The portfolios are concentrated and tend to exhibit a very high active share, meaning the funds are very different to their underlying benchmarks. The portfolios tend to have reasonably high tracking errors and on average incorporate many non-consensus investment ideas.

Market BehaviourHigh Alpha approach
 Trader of shares  Owner of businesses
 Short term return  Long-term return
 P/E upgrades  Fundamental analysis (trust in valuations)
 Benchmark hugger  Conviction stock pricing
 Consensus  Contrarian
 Mega-cap biased  Small / mid-cap bias

We demonstrate below an overview of how the High Alpha Strategies overlap and compliment each other in terms of investment style and market cap exposure.

High Alpha Strategies  

StrategyInception dateInvestment StyleAUM (£m)*No of holdings
UK Smaller Companies  Aug 2005 UK small cap, value and growth 918 94
UK Alpha  May 2005 UK all cap, deep value and high growth, bias to AIM 193 52
UK Special Situations  Oct 2008 Concentrated, all cap focus, bias to mid caps 284 32
UK Growth  Oct 2000 UK mid and large caps, concentrated growth 193 25
European ex UK  Dec 2003 European large cap, growth, momentum 494 46

*As at 1 November 2017

Risks

The strategies mentioned invest in equities (shares of companies), so there is a higher risk of the Funds value being volatile (ie going up and down) than with a Fund which invests in most other asset types, particularly in the short term.

Any objective or target will be treated as a target only and should not be considered as an assurance or guarantee of performance of the Fund or any part of it. Investors must refer to the Key Features Document and the Description of Funds prior to investment which carry full details of all pertinent risk warnings. Copies can be made available on request. There are no guarantees that objectives will be achieved. This document should not be taken as an invitation to deal in Legal & General investments or any of the stated stock markets. You may not get back the amount you originally invested.

The return from your investment is not guaranteed and therefore you may receive a lower or higher return than you anticipated. Past performance is no guarantee of future performance.

Contact us

Anna Walsh
Product Specialist
+44 (0)20 3124 3625
[email protected]

Key documents

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