Quoted Equity

We believe you build wealth by owning companies, not trading them on the stock market.

Focused on ‘co-owning’ companies that are built on solid foundations and generate cash, we target businesses that we understand and that can deliver good returns on capital. We tend to find these companies within technology, healthcare and life sciences equipment and services, industrials and consumer goods.

In our search for underlying predictability and pricing power, we look for factors such as a strong brand, scalability, repeat business and a strong market position.

The strategy has two key objectives, firstly to provide exposure to individually excellent companies for a long period of time to gain long-term economic benefit. Secondly, to hold these in a combination that creates a relatively resilient equity portfolio.

Holdings & performance – Capital

Holdings & performance – Income

The Quoted Equity strategy is split into two portfolios: Capital and Income.

The portfolios contain significant holdings in well managed companies, held for the long term. These investments typically offer substance, brand, intellectual property and strong market position.

Ben Archer and Alan Murran are Co-Heads of Quoted Equity with Ben having responsibility for the Income portfolio and Alan having responsibility for the Capital portfolio.

Introducing Quoted Equity

We are not traders of stocks; we are long-term owners of companies.

Watch film

“The Quoted portfolio is a risk managed, concentrated collection of high quality companies which we can hold for long periods of time. We always invest with a margin of safety, using general stock market volatility for entry points and to make sure we are being careful with our shareholders’ money.”

Mathew Masters

CEO

Meet the Quoted Equity team

Combined portfolio performance data

Over 1 Yr

Over 3 Yrs

Over 5 Yrs

Absolute Return

-9.3%

24.2%

54.6%

Annualised Return

-9.3%

7.5%

9.1%

as at 30 September 2022

Capital Portfolio

The Capital portfolio comprises investments in well-managed, publicly quoted companies, held for the long term. We select mature, enduring businesses that have a significant presence in their market – and where assets consistently produce strong returns on capital, enabling reinvestment and growth. Our objective is to deliver a 10% annual return, with no income constraint.

Performance Data

Over 1 Yr

Over 3 Yrs

Over 5 Yrs

Absolute Return

-11.7%

28.9%

78.7%

Annualised Return

-11.7%

8.8%

12.3%

as at 30 September 2022

Holdings

Ten Largest Holdings

Value (£m)

Microsoft

55.6

Oracle

51.1

Thermo Fisher Scientific

45.6

Watsco

45.0

Texas Instruments

40.8

Philip Morris

33.0

Charter Communications

31.1

Becton Dickinson

29.2

British American Tobacco

28.1

Spirax Sarco

27.9

Fastenal

26.6

414.0

Other investments

132.5

Total

546.5

as at 30 September 2022

Geographic distribution

73%

                            North America
                                                
21%

                            UK
                                                
3%

                            Asia
                                                
3%

                            Europe

Sector distribution

37%

                            Industrial
                                                
26%

                            Technology
                                                
15%

                            Healthcare
                                                
8%

                            Financial
                                                
6%

                            Telecommunications
                                                
5%

                            Basic materials
                                                
3%

                            Consumer goods

as at 30 September 2022

Income Portfolio

The Income portfolio is constructed using similar quality criteria as the Capital portfolio: we invest selectively in mature, long-term businesses with resilient business models and the capacity and management culture to pay sustainable dividends. Our objective is to deliver a 6.5% annual return, with an initial yield of 3.5% based on the cost of investment. However, once invested we will not sell down positions simply based on dividend yield, as this will fall as a result of share price growth. Our underlying strategic aim is to invest in good quality companies whose progress over time will grow the absolute amount of dividend ahead of inflation.

Performance Data

Over 1 Yr

Over 3 Yrs

Over 5 Yrs

Absolute Return

-1.7%

13.5%

12.2%

Annualised Return

-1.7%

4.3%

2.3%

as at 30 September 2022

Holdings

Top Largest Holdings

Value (£m)

Yield %

Unilever

18.0

3.5

Watsco

17.0

3.3

Reckitt Benckiser

16.1

3.1

Texas Instruments

14.8

2.8

Fortis

14.8

4.1

Diageo

14.7

2.1

SGS

14.1

3.6

British American Tobacco

14.0

6.4

National Grid

12.2

5.2

Fastenal

10.6

5.4

146.3

Remaining holdings

51.2

5.1

Total

197.5

4.2

as at 30 September 2022

Geographic distribution

59%

                            UK
                                                
34%

                            North America
                                                
7%

                            Europe

Sector distribution

37%

                            Consumer goods
                                                
33%

                            Industrial
                                                
17%

                            Utilities
                                                
13%

                            Financial

as at 30 September 2022

Our geographical analysis reflects listing location.