UBP
Menu
Investment expertise

European Equities

European Equities

European equities are managed by UBP’s London-based European Equities team, which is made up of six highly experienced members. We are proud to say that the team has one of the market’s most consistent performance track records to date.



Investment case and philosophy

European equities currently present a compelling investment opportunity. We have identified the following points that support this view:

  • The UK refendum result has increased political and economic uncertainty in Europe;
  • The economies that have enacted structural reforms are performing the best (e.g. Ireland, Spain);
  • Core Europe has shown resilient consumer confidence and continued, though modest, growth;
  • European valuations remain attractive and the corporate sector is in good shape;
  • Dividends have been an important factor in a low-yield environment;
  • Equity markets have been progressively pricing in less deflation, reflecting the turn of the commodity cycle.

Our philosophy is based on having a high active share with no neutral positions or underweights, while controlling the systematic risk with careful sector allocation. Our pragmatic investment approach focuses on capital structure. We find value in under-researched stocks and adapt our themes to changing scenarios.

Investment team

The team’s four portfolio managers and senior portfolio analyst have a long history of working together, having joined UBP from Threadneedle, where their portfolios consistently beat the benchmarks. The team’s co-heads, Rob Jones and Scott Meech, have worked together for the past nineteen years.

  • A disciplined approach bringing consistent returns over the past eight years in both bull and bear markets.
  • First-quartile performances over three years, and among the 2.09% of peers who outperformed in 2011, 2012, 2013, 2014 and 2015.
  • Since reaching its three-year track record, the team has onboarded three institutional European equity mandates.

Investment process

The European Equity team’s investment process is a combination of analytical skills and quantitative instruments.
The various steps are as follows:

  • Top-down analysis based on thematic ideas, macroeconomic analysis and sector views;
  • The investment universe is reduced by being screened for suitability, while applying a market-cap and liquidity filter, along with looking at free-float and other factors;
  • In-depth, fundamental analysis of all stocks on the resultant focus list taking valuations, growth, income, returns and momentum into account, backed up by regular company meetings;
  • Portfolio construction with a strict risk-management approach for country and sector diversification, coupled with ongoing risk-control at the stock, sector, country and overall portfolio levels.

european-equities-en.png

Fund concept

Our Europe Equity fund is a relatively concentrated portfolio of 50-70 stocks, which is managed according to a predominantly bottom-up approach. Major trends and investment themes are also taken into account. We recognise that pragmatism and flexibility are essential in fast-moving markets, meaning we can adopt different investment styles as circumstances dictate. Conviction is key in everything we do.

Product range

Our European Equity team manages a wide range of products, giving investors the choice of different beta and volatility levels in Europe or the eurozone.

Discover our range of funds
Our fund range

Funds

View all our funds.

Read more

Institutional clients

With a team of more than 200 people, UBP Asset Management has built an on-the-ground presence in the world’s major markets through organic growth and selected partnerships.

Insight 16.10.2017

Emerging-market debt: old prejudices die hard

Although they are often regarded as too risky, hard-currency emerging-market corporate bonds have their attractions, including a very competitive risk/return profile. As economic fundamentals improve, investment flows into this asset class are likely to continue growing.