Growth Strategy

The Growth 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.

Alpha Strategy
Market behaviour Growth 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 biased

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

Diagram of High Alpha Strategies
x
Strategy Inception date Investment style

AUM 
(£M)*

No. of holdings
UK Smaller Companies Aug 2005 UK small cap, value and growth 880 90
UK Alpha May 2005 UK all cap, deep value and high growth, bias to AIM 173 49
UK Special Situations Oct 2008 Concentrated, all cap focus, bias to mid caps 268 36
UK Growth Oct 2000 UK mid and large caps, concentrated growth 198 25
European ex UK Dec 2003 European large cap, growth, momentum 493 43

*As at 28 February 2018

Growth team

Find out more about the team that manages our Growth strategy.

View Growth team

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.