Equity Model Portfolios

For the investor who does not wish to be actively involved in the day to day decision making process of their investments our Model Equity portfolios are an excellent way to gain direct access to our investment expertise. Our portfolios place your objectives at the core of our investment strategies, as we aim to generate superior risk-adjusted returns over the medium-long term. There are several key differentiators that enable us do this:

  • Active management
  • Focus on absolute vs. relative return
  • Cash management
  • Investment approach

Each investment strategy has a clear objective which drives the decisions made throughout the process. We believe that having a clear investment objective is crucial for the investment manager to make the best investment decisions for clients. There are five key elements to our investment process:

  • Risk management
  • Macro economic analysis
  • Technical analysis
  • Valuation analysis
  • Bottom up fundamental analysis
equity_model_portfolio

There are currently five equity portfolios to choose from; four are long only and one is a long/short portfolio. This means that the portfolio can sell positions it does not own with a view to buying them back at a lower level as it believes the asset is going to go down in price.

    • Global Equity Income
    • Global Compounder
    • Global Opportunities
    • Global Ethical Equity Income

Global Equity Income

The investment objective of the Merrion Global Equity Income Portfolio is to invest in a diversified global portfolio of financially-strong, well-managed companies that have a proven record in paying an attractive dividend and have management commitment to consistently increase it. Our aim is to improve long-term risk-adjusted total equity returns while maintaining a balanced exposure to dividend yield, quality and dividend growth.

Our rationale is that in a low yield and low economic growth environment, it is increasingly difficult to generate income. The Merrion Global Equity Income Strategy portfolio manager has a long and proven track record of generating an attractive and growing income stream, as well as capital growth, combined with lower volatility than the overall global equity market. The thinking behind this strategy is that companies with an ability to pay higher dividends on a sustained basis generally provide stable growth opportunities.

 Global Compounder

The investment objective of the Merrion Global Equity Compounder Portfolio is to actively invest in a diversified global portfolio of high quality companies that offer compounding attractive returns and lower volatility over time. A key focus is the avoidance of ‘negative surprises’ companies that can often have a significant detrimental effect on an investor’s portfolio.

Our rationale is that quality compounders share a few common characteristics which we believe are key to achieving good investor returns over time: strong competitive position, ability to grow revenues and earnings sustainably over time, strong and/or improving Return on Invested Capital and cash generation capabilities, and management commitment to return capital via share buybacks and/or dividends.

Global Opportunities

The investment objective of the portfolio is to secure long term capital growth by investing primarily in Equities but also Bonds, Alternative Assets and cash. The Portfolio Manager has the flexibility to build up cash reserves to protect and hedge the portfolio.

Our rationale is that investment ideas may be generated as a result of a combination of different strategies. These strategies may include (but not limited to) the following criteria:

  • Value Companies with low valuations relative to intrinsic worth
  • Growth Companies with high earnings growth potential
  • Technical Measures which help to time entry analysis and exit from markets and stocks
  • Macro- Shifts in national economic policies economic affecting asset classes
  • Thematic Long term trends such as demographic, environmental or resource issues
  • Event driven Special situations such as takeovers, company restructurings etc

Global Ethical Equity Income

The investment objective of the Merrion Global Ethical Equity Income Portfolio is to invest in a diversified global portfolio of financially-strong, well-managed, ethically-acceptable companies (generally companies that don’t have known revenue streams from Alcohol, Tobacco, Pornography, Armaments and Gambling and don’t use child labour), that have a proven record in paying an attractive dividend and have management commitment to consistently increase it. Our aim is to improve long-term risk-adjusted total equity returns while maintaining a balanced exposure to dividend yield, quality and dividend growth.

Our rationale is that in a low yield and low economic growth environment, it is increasingly difficult to generate income. The Merrion Global Equity Income Strategy portfolio manager has a long and proven track record of generating an attractive and growing income stream, as well as capital growth, combined with lower volatility than the overall global equity market. The thinking behind this strategy is that companies with an ability to pay higher dividends on a sustained basis generally provide stable growth opportunities.