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Ninety One UK Alpha
Ninety One UK Alpha is a well-diversified core UK equity fund. Simon and his team aim to buy quality companies that consistently create value for shareholders. The fund retains the same philosophy and process as Simon's previous fund, which he ran so successfully at Threadneedle.
Previously Investec UK Alpha
Our opinion
The Ninety One UK Alpha fund has a solid and sensible investment process. Simon is a hardworking and passionate fund manager, with a consistent track record and a strong team behind him. We would regard this fund as a core UK equity holding.
Company description
Ninety One is an independent, active global asset manager, managing more than £120.8 billion* on behalf of clients. Established in South Africa in 1991, as Investec Asset Management, the firm started offering domestic investments in an emerging market. In 2020, almost three decades of organic growth later, the firm de-merged from Investec Group and became Ninety One. Today, the firm offers active strategies across equities, fixed income, multi-asset, alternatives and sustainability to institutions, advisors and individual investors around the world.
*as at 30.09.19
Fund manager
Having graduated from Durham University and the University of Aix-Marseille with a BA Honours degree in Business and French, Simon Brazier began his career with Schroders in 1998 before moving Threadneedle. He joined Investec (now Ninety one) in 2015 and has a strong and consistent track record. Simon was joined at the company by a number of his previous team at Threadneedle. He is now manager of the Ninety One UK Alpha fund and co-head of the company’s 'Quality’ team.
I firmly believe that UK equities should have a prominent place in any portfolio seeking to achieve strong, long-term, risk-adjusted returns.
Simon BrazierFund manager
Investment process
The team believe that markets are excessively focused on short term factors and that most analysts typically concentrate on the next set of results and not where a company will be in five years’ time. This creates opportunities to invest in quality companies that will deliver for many years into the future. The team only buys companies that are adding value for shareholders by allocating capital efficiently. Consequently, investing in proven company management is very important. Cash flow generation is also key, and businesses are typically valued based on the amount of cash they produce.
ESG
ESG - Integrated
ESG is embedded into NinetyOne’s philosophy, process and research through its analysis and assessment of three elements of a company: business model, financial model and capital allocation. The managers look at the business model of each stock to assess its sustainability with regard to suppliers, customers, employees, governments, products and services, and the environment. They also examine a company’s financial model, assessing the quality of earnings and integrity of accounting policies and the sustainability of a company’s capital structure and cash flow. Their capital allocation assessment involves ensuring that governance issues such as risk management, board balance, executive remuneration and turnover are aligned with stakeholder interests and long-term value creation. The approach is reflected in the risk/reward assessment of each stock, and therefore influences portfolio decision making. The managers use third-party ESG tools, as appropriate, to support their analysis, but they do not rely on external providers. Their overall assessment is reflected in the valuation they ascribe to a stock, and the risk/reward trade-off of a stock that determines inclusion in the portfolio and position sizing.
Risk
Ninety One UK Alpha must have at least 50% of its holdings in the FTSE 100 (the UK’s largest 100 companies) and typically has between 50 and 90 stocks. Simon doesn’t believe in betting heavily on one or two stocks or sectors. Therefore, no stock has a weight of greater than 5% and the fund will not be +/- more than 8% for any sector versus the FTSE All Share index.
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