Equities

Equities form the largest single allocation within our reference portfolio and are a core part of our return seeking allocation. Our in-house Equities team manages approximately £20bn invested in two Global Research portfolios and two Global Factor portfolios.

The team actively manages our investments in public equity securities, across a diverse set of sectors and geographies, to generate optimal long-term returns. Fundamental research into companies is conducted on a regional basis, complemented by global sector meetings where the regional experts can exchange views.

The Global Research portfolios are Global Developed Markets and Global Emerging Markets. Team members conduct fundamental research directly, via analysis of company report and accounts, one-to-one management meetings and attendance at corporate presentations, and indirectly via external research providers. This analysis is used to select stocks which will generate long term investment performance relative to the relevant benchmark(s).

Porfolio Table

Equity Quantitative Research team

The Equity Quantitative Research team is a relatively new addition to our Equities department. It was established with two objectives:
  1. To contribute to the returns generated by the Equities fundamental research team by developing quantitative screens and tools to make research more efficient and to aid portfolio construction. 
  2. To build a suite of portfolios that provide efficient exposure to equity ‘beta’ (volatility versus the market) aligned to the Scheme’s risk, return and/or cash flow requirements. This adds another source of risk reducing returns to USS’s asset mix. The Global Factor portfolios provide additional diversification benefits compared with traditional liability hedging assets, as well as access to ‘betas’ which we are confident will outperform the equity element of the Reference Portfolio over time. 

The Quantitative Research team currently runs two portfolios – sustainable income and low volatility.

Last updated: about 3 years ago