Our common investment language

We use five key questions to frame our investment ideas – providing a common investment language that is used across all asset classes:

• What are the key drivers?
  We must be able to identify and understand the most important factors that drive the market price of an investment. The emergence of new drivers is of critical interest.
• What is changing?
  We focus on and understand the dynamics of these key drivers (e.g. competitive environment, demand shifts, management changes, earnings).
• What expectations are priced in?
  We analyse what expectations for the future are currently being priced into the investment by the market.
• Why will the market change its mind about these expectations?
  We need to be confident that the changes we are predicting (which are not expected by the market) will be sufficient to cause the market to re-price the investment.
• What is the trigger?
  We need to know that the triggers for a re-pricing exist and are within our investment timeframe. Put together, these questions comprise our company’s common investment language, and we refer to them in each of our regional offices and across every asset class. These are key to generating consistent investment insights that can be easily understood across all asset classes.

Put together, these questions comprise our company’s common investment language, and we refer to them in each of our regional offices and across every asset class. They are the key to generating consistent investment insights that can be easily understood across all asset classes.

The aggregate of all our investment insights is collated and expressed in our House View. This provides a clear, forward-looking strategic direction for our investment decisions and ensures we have a consistent approach to managing market risk across our product range.