The emerging UK Equity value opportunity
Bargains galore, but beware the trapsThe possibility of a ‘no-deal’ Brexit has meant UK equities have become one of the most unloved parts of the market. But with extreme pessimism comes tantalising investment opportunities that are victim of indiscriminate sell-offs.
This debate brings together seven leading wealth managers and top-performing fund manager Matthew Tillett, who runs the Allianz UK Opportunities fund, to get into the heart of the asset class. We start out by discussing just how much value there is in UK equities as parliament battles to push through Brexit. We then visit the age-old value versus growth debate, which is especially imperative if the political uncertainty drags the UK into a recession. Finally we explore where the real stock bargains lie and highlight the value traps investors should watch out for.
Seven wealth managers and Allianz Global Investors fund manager Matthew Tillett examine the big UK value opportunity opened up by Brexit.
The Allianz UK Opportunities Fund has been managed by Matthew Tillett since its inception in 2011. Over this period, the Fund has delivered a strong and consistent performance, outperforming the FTSE All Share by 3.5% per annum with a highly favourable upside / downside capture ratio. This means investors have received a compelling performance outcome with a below average level of volatility. The fund is a top quartile performer over 3 and 5 years.
Portfolio Manager, Allianz Global Investors
Matthew Tillett is the lead portfolio manager of Allianz Global Investors’ UK Opportunities strategy, which he has run since 2011. In addition, he is the deputy portfolio manager of the Brunner Investment Trust and the Merchants Investment Trust. He joined the firm in 2006 as part of the Global Graduate Programme. In 2007, he joined the research department as a pan-European media analyst and in 2008 he moved to portfolio management as part of the UK equity team. Prior to joining Allianz Global Investors, he worked at Datamonitor and the Office for National Statistics. He graduated from Bristol University with a first-class degree in economics and economic history. He also holds a master’s in international political economy from the London School of Economics. He is a CFA charterholder.
Portfolio Manager, Barclays
Stephen Peters joined Barclays in October 2016 and is responsible for researching UK equity funds and UK equity multi-manager funds. He is also responsible for researching tax-efficient vehicles and closed-ended funds. He joined Barclays from Charles Stanley, where he worked for nine years and led the fund research team, as well as being co-manager of its multi-asset model portfolio service. Prior to Charles Stanley, Peters worked at Hewitt Associates for more than four years in its manager research team, and started his career as a graduate trainee at a large independent financial adviser. He has a degree in psychology from Essex University and is a CFA charterholder.
Associate Director, Fund Research & Investment Strategy, Coutts & Co
Edward Heath-Thompson is a fund analyst with nine years’ experience. At Coutts, he is responsible for UK equity, thematic equity and global equity fund manager selection. Prior to Coutts, he worked at Independent Strategic Research, a fintech business providing bespoke investment propositions to intermediaries. He holds a degree in international finance and capital market studies from Brighton University and a master’s in finance and investment from Exeter University. He holds the IMC Certificate, the CISI Diploma and is currently studying for the CFA.
Head of Investments, Aberdeen Standard Capital
Darren Ripton assumed responsibility for the day-to-day investment process within Standard Life Wealth (now Aberdeen Standard Capital) in 2009, after joining the company in 2007 as a client portfolio manager. He has helped to develop the fund selection and portfolio construction process that is used by the business. He has more than 20 years’ investment experience, seven of which were spent managing discretionary mandates with ABN Amro Private Bank. He is a member of the Chartered Institute for Securities & Investment.
Investment Director, Brooks Macdonald
Michael Toolan joined Brooks Macdonald in 1999 and manages bespoke discretionary portfolios on behalf of a range of clients. He is a member of the firm’s Asset Allocation Committee, heads the UK funds research team and sits on the thematic research team. He holds both the Certificate in Private Client Investment Advice & Management and the Investment Management Certificate.
Portfolio Manager, EQ Investors
Kasim Zafar is EQ’s investment strategist and also the investment manager for EQ Investors’ Best Ideas model portfolios. He leads EQ’s research in portfolio strategy and supports the investment team’s fund research across all asset classes. He began his career in investments in 2002 at a boutique alternative investment specialist, moving into multi-asset investing in 2010. He has gained experience as an investment manager and analyst across global capital markets, building portfolios with varying risk and return objectives. He is a CFA charterholder, as well as a regular member of the CFA Institute and CFA UK. He graduated with a degree in physics from Imperial College London.
Senior Economist, Mazars Wealth Management
George Lagarias has 14 years’ experience in financial markets. He spent eight years in Greece working as an investment analyst for wealth managers Alpha Bank and Eurobank. He also served as an equity and fund-of-funds manager and strategist for Marfin Asset Management. He subsequently moved to London, where he worked as an investment analyst and investment writer for EFG Asset Management and Close Brothers Asset Management. For the past three years, he has been with Mazars Wealth Management as the senior economist and market strategist. He maintains an intense focus on the macroeconomy and on behavioural finance.
Chief Investment Officer, Connor Broadley Wealth Management
Chris Wyllie has 30 years’ experience within finance. He started in banking with Brown Shipley in 1988 before moving into fund management with Foreign & Colonial, where he managed UK equity portfolios for both institutional and retail clients. In 1997, he joined Schroders as a director and head of UK equity strategy. He went on to a similar role at BlackRock (formerly Merrill Lynch Investment Managers) before moving into wealth management with JP Morgan Private Bank. In 2006, he joined Iveagh Ltd to become the Guinness family’s chief investment officer. Eight years later, he became CIO of Connor Broadley, a Mayfair-based integrated financial planning and discretionary investment management boutique. Wyllie read history at Trinity College, Cambridge.