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LF Canlife UK Equity Fund

About the Fund

The LF Canlife UK Equity Fund aims to generate attractive long-term returns by investing in the equity of UK companies

Essential features of the Fund

LF Canlife UK Equity Fund 

  • The Fund invests mainly in the equity of UK listed companies and can invest in all sectors of the market
  • There is no specific target in relation to market sectors
  • The target number of positions is 50-80 with an active position of up to 5%
  • The maximum cash weighting is 10% with a typical range of 0%-2.5%
  • The Fund can zero weight sectors or stocks where there is no conviction

For further details on the objective and investment policy, visit the Literature section to view fund KIIDs and Prospectus.

 

How the Fund is managed

The Fund uses primarily a bottom-up stock selection process, but is flexible, pragmatic and mindful of prevailing macroeconomic and market conditions, for example; interest rates, commodity prices and inflation

  • Fundamental analysis – specific holdings are determined through research that is undertaken by the Canada Life Asset Management’s UK equities team, with each manager making individual stock selection decisions. The team also seeks input from the wider Canada Life Asset Management’s' equity and fixed income teams on matters of global macro and market trends
  • Sector selection - bottom up stock selection is a major factor in determining the shape of the overall Fund portfolio. However, sector allocations are also important in order to ensure balance and diversification. Typically, macro and market views are considered in order to balance the portfolio across factors such as growth, cyclicality and defensiveness. Additionally, the desired exposure to trends such as in bond yields and commodity prices are key considerations. This approach to portfolio construction allows us to deliver a diversified source of return from both a capital and income perspective
  • Stock selection - typically comprised of liquid large and mid-cap UK equities. The stock selection process itself takes into account several factors. These include the company’s market position, quality of its brand and underlying assets, how it fits in with current market and economic trends, and the specific drivers behind earnings and dividend growth. The managers will also conduct a thorough analysis of a company’s valuation, being sure to understand its earnings forecasts and any changes to a company’s strategy or management team

 

Nigel Kennett

Nigel Kennett

Senior Fund Manager, UK Equities

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Reno Shala

Rino Shala

Fund Manager, Equities

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Reasons to recommend

Attractive growth

The Fund has a quality-growth orientation investing in mid-cap companies as well as large-cap companies and tries to identify key structural growth trends and invest behind well-run companies in those areas. We believe this form of investing will outperform the general indices over the medium to longer term which is the aim of this Fund.  

Active management targeting consistent long-term performance

Our managers believe that making active portfolio management decisions is the best way to deliver performance over the long-term. Investments are generally made with a medium to long term investment horizon in mind but holdings are adjusted according to market conditions. The Fund may not be appropriate for investors who plan to withdraw their money within 5 years.  Due to the underlying assets held, the price of the Fund is classed as having above average to high volatility.

The value of investments may fall as well as rise and investors may not get back the amount invested

Due to the underlying assets held, the price of the fund is classed as having above average to high volatility.

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