The Non-US Equity strategy aims to outperform its benchmark, MSCI All Country World ex-US Index, by at least 3% per annum over a rolling 3-year period. It targets high returns and long-term capital growth by investing in a portfolio of equity and equity-related securities traded in Developed Markets outside the US, as well as Emerging Markets.


Non-US Equity Strategy

The Non-US Equity strategy targets strong excess returns through fundamental bottom-up stock selection, within an integrated top-down macro framework.

We believe that equity markets are inherently inefficient because they fail to adequately account for change. Such change can take place at a top-down macro level, be it structural, geopolitical or economic. It can also occur at a bottom-up, stock-specific level. Additionally, we believe that persistent behavioural biases can cause asset prices to diverge from underlying fair value. Finally, we believe that these structural inefficiencies have been exacerbated by the rise of ETFs and passive investments, creating repeatable opportunities for genuinely active investors.

Our investment approach aims to exploit these opportunities by integrating rigorous bottom-up fundamental analysis within a top-down framework. This framework identifies attractive themes and sectors that are experiencing material change. It focuses our bottom-up research efforts on the areas of the market that we expect to be most rewarding. Ultimately, we aim to detect where assets have materially diverged from fundamental fair value, and look to identify catalysts that will correct the mispricing within an investable timeframe. This philosophy is tried and tested through several market and economic cycles and has successfully added value for long-term investors.

Portfolio construction is the synthesis of idea generation, conviction and risk management. The strategy will typically hold between 40 and 50 stocks with an active share typically above 85%. We believe that long-term outperformance is best generated by owning companies with sustainably high returns that can compound growth over time, acquired at attractive valuation levels.  Thus, we would characterise our style as undervalued growth.    

The following aspects of our investment process provide an edge and set the TT proposition apart from the competition: 
  • Top-down and bottom-up integration. Our process utilises a combination of top-down and bottom-up analysis. This linkage allows top-down factors to guide the team as to where to focus their resources to find attractively valued growth stocks.

  • Managed flexibility. This is a Core approach with significant scope to adjust its positioning to capture the best opportunities at any given time. By leveraging its top-down framework, it dynamically shifts its exposure up and down the market cap spectrum, across both developed and emerging markets, and into both Growth and Value factors, according to the prevailing opportunity set.
  • FX hedging. We believe that by adopting a disciplined, active approach to currency management we can further enhance the performance of the portfolio, and have a long history stretching back decades of doing so. 
  • Truly global expertise. We have decades of experience analysing global markets and have developed a market-leading EM franchise. Our EM expertise is leveraged significantly for this strategy, ensuring that our best EM ideas are included in the portfolio where appropriate.

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