Developed Markets Strategy

The Lansdowne Developed Markets Fund, previously known as the Lansdowne UK Equity Fund, was launched in August 2001 under the management of Peter Davies and Stuart Roden. The Fund, a long/short strategy, aims to run volatility of 8% to 12% over the medium-term. Market exposure is expected to be generally low over the medium-term, although it can be more meaningful (usually up to around 50% effective exposure) in the shorter-term. The gross exposure range is targeted at 100% to 300% of net asset value. The investment process is a fundamental one, with a time horizon of typically 1 to 4 years. Research is generally done at the stock level but often generates more thematic outputs that are reflected in the overall portfolio.

The Lansdowne Developed Markets Strategic Investment Fund, launched in July 2007, is an unconstrained equity substitute product that leverages the fundamental stock analysis and risk management techniques of the Developed Markets Fund. The core investment process is driven by a set of proprietary and independent research tools which form the basis for both the fundamental company research and the macro thematic positioning. The majority of the Fund’s positions will also be held in the long book of the Developed Markets Fund, although the Developed Markets Strategic Investment Fund will have a higher weighting to mid-caps and unlisted securities. Volatility is expected to be similar to that of equity markets and the effective net exposure will normally range from 75% to 125% of net asset value, while the beta-adjusted net exposure will typically range from 100% to 105%.

The Lansdowne Developed Markets Long Only Fund launched in October 2012, leverages the fundamental stock analysis of the Developed Markets portfolio managers and analysts. The Fund invests predominantly in mega-cap (+$10bn market cap) companies in developed markets through equity securities which are identified as being mispriced, either in absolute terms or relative to other companies. The Fund has the ability to invest up to 10% in non-developed markets. The net exposure will normally range from 80% to 100%, although it is anticipated that the Fund will normally be 100% invested. The Fund will be relatively concentrated, typically holding c.15-25 positions with a maximum position size of 15% (at cost), while the maximum investment in any sector will typically be less than 30%.