“What is research but a blind date with knowledge?” 

This fantastic quote from US entrepreneur Will Harvey encapsulates the emotions of anyone who has been through the rigours of being set up on a blind date. It suggests that starting a big piece of research, much like meeting someone new, is similar to taking a step into the unknown, where outcomes and potential discoveries are enigmatic at the outset. And yet, here lies the true pleasure of conducting thorough research, to find solutions and insights that weren’t expected straightaway but offer the best results.

The power of intrepidness

While admittedly less romantic, conducting research into a new fund is just as fulfilling. This has been the case with discovering the M&G Europe Ex-UK Equity Fund, an offering that flashed up on our screens almost by accident, appearing alongside investable funds even though it is sold as a life fund, not being available to domestic retail investors. However, after seeing that it screened very well for the type of fund we were seeking, we spoke to M&G and using our scale, made the agreement that if we carried our interest forward, they would look to make the fund available for us.

After several meetings with the manager to delve into the fund’s investment process and philosophy and much negotiation on becoming a cornerstone investor, we secured a holding which not only fits our mandates perfectly, has a very competitive charging structure, but also shows the power of intrepidness when scouring the market for the right solution.

The fund itself, run by an experienced team led by Richard Halle, employs a large cap value orientation, allowing us to blend it with funds that have more of a growth feel to create a both balanced and dynamic European Equity basket.

Usually holding between 50-60 stocks, with a max holding size being set to +3% of the benchmark weight, the fund follows a very strict process, ensuring there are no large bets placed, with style drift kept to a minimum. The manager works on identifying those companies that demonstrate financial strength, business durability and with management teams who exhibit strong track records. With more established companies usually fitting the bill, the manager usually gravitates towards larger cap stocks with higher levels of liquidity.

Thorough research pays off

With a comprehensivness approach to research, exploring all possible avenues, we may not have encorporated the romance of Harvey’s quote, but we have certainly found our ideal partner when it comes to our European exposure.

Aberdeen Portfolio Solutions Limited offers a range of portfolio strategies for adviser firms, with a choice of management styles and risk levels to meet clients’ investment needs. Find out more.

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