As your ambitions grow, so should your investment strategy

Create An Account

Union Finance Investment’s investment philosophy stems from our fundamental belief that genuine active fund management can deliver meaningful outperformance over the medium to long term. We believe the quality of our people and the culture that we foster are essential to achieving this. It’s why we seek to attract and retain some of the most talented individuals in the business and create an environment where their skills can flourish.

We are committed to leveraging our global network to the full and using our global research findings to generate potentially competitive returns. To this end, our equity and credit analysts evaluate companies from many perspectives. When determining a business's potential for long-term value creation, our investment professionals carefully consider a company's valuation and earnings power, and their ability to service debt. Our experienced portfolio managers pursue the research ideas that carry our highest conviction. Using proprietary tools, they construct portfolios that aim to maximise returns with the appropriate level and distribution of risk.

Our investment approach is based on the following principles:

  • Giving our Fund managers freedom to outperform
  • Active Management
  • Company Assessment
  • Accountability
  • Investment risk policy
  • Corporate Governance
  • We give our fund managers freedom to outperform

    Union Finance Investment success as a fund management group has its roots in our investment culture. We believe our talented fund managers perform best if they are given the freedom to invest as they believe is appropriate, while considering current market conditions and acting within the appropriate regulatory framework.

    Fund managers are organised into focused teams with specialist knowledge and experience which allows for short lines of communication. We believe this approach gives our fund managers the necessary flexibility to make informed and timely investment decisions.

  • We believe in genuine active management, not passive

    Union Finance Investment’s fund managers are active rather than passive managers. Passive management involves holding investments that attempt to replicate the performance of an index, like the FTSE All Share Index.

    Active managers, on the other hand, are able to focus on investments that the fund manager believes offer the best potential returns. Most importantly, unlike passive strategies, active managers can also avoid holding investments where they believe future returns will be less attractive.

    For active management to have the potential to deliver outperformance over the medium to long term after fees, we believe that fund managers must have strong conviction in their best investment ideas.

  • Our fund managers meet and access the management of the companies we invest in

    Meeting companies face-to-face is one of the most important elements of our research. Our fund managers meet hundreds of company chief executives, chairmen and directors each year to assess the quality of their business strategies and their overall management teams.

  • We emphasise fund manager accountability

    While our fund managers work together closely, sharing ideas and debating market prospects, each manager has individual responsibility for his or her own portfolios. Many of our fund managers have substantial personal investments in their own funds, so their interests are aligned with their clients’.

  • We follow a robust investment risk policy

    Fund managers at Union Finance Investment are encouraged to pursue outperformance through our active fund management culture. They do this in line with a risk management policy which involves three areas:

    • All fund managers are aware of the risks in their portfolios, and work in parallel with Union Finance Investment’s Independent Portfolio Analytics Team (PAT)
    • We have compliance and operational risk departments, who can apply a set of portfolio-specific internal limits to the risk levels in our funds.
    • The Head of Investment Risk, Chief Investment Officer, Risk Committee and ultimately the board can discuss market risk levels with the relevant fund manager, who may then be asked to adjust accordingly.
  • We take our corporate governance responsibilities seriously

    We aim to act in the best interests of all our stakeholders by engaging with the companies that we invest in, and by exercising our voting rights with care. Not only is this commensurate with good market practice, it goes hand in hand with ensuring the responsible stewardship of our clients' funds

    Central to our investment process is the consideration of each company’s ability to create and sustain long-term shareholder value.

    Our governance analysts conduct and help co-ordinate research and engagement around stewardship and governance issues affecting company performance. Union Finance Investment's approach is for fund managers and governance/sustainability analysts to work in partnership when engaging with companies.