Sarasin takes the theme tune to UK
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Sarasin & Partners has established two funds that will apply its thematic investment strategy to UK equities.
Sarasin EquiSar UK Thematic aims for a total return, comprising growth and income, that is 1 per cent above the FTSE ALL Share (5% Capped) benchmark on rolling three-year periods. It will invest in UK equities that are expected to benefit from the long-term themes that Sarasin has identified as drivers for growth.
Sarasin EquiSar UK Thematic Opportunities will use the same investment process, but its objectives are different. It aims for a total return that outperforms its benchmark, the FTSE All Share index, by 3 per cent a year net of fees.
Sarasin has taken a thematic investment approach to global equities for decades and this will shape its view of the UK market. Sarasin believes UK companies should be put in their global context, because much of their revenue is generated overseas.
It believes good stock selection, portfolio construction that is benchmark aware rather then benchmark constrained, and a strong buy and sell discipline will give its funds an advantage.
Fund managers Rohini Rathour and Jennifer Ramsey will look at five investment themes when selecting stocks for the new funds. Corporate restructuring looks at firms that are restructuring to increase their potential profits. Intellectual property & excellence will focus on firms that can protect their intellectual property.
Pricing power refers to companies who have some control over the prices they charge due to their strong market positions. Security of supply identifies companies that should benefit from price rises in natural resources and other necessities, while the strong get stronger focuses on financial strength.
Sarasin’s funds could be useful to IFAs who want to allocate only to the UK, with reference to how it is affected by global issues. Newton’s UK opportunities fund also takes a thematic approach and as a consistent performer in recent years, it could provide competition.
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