Sanlam Active UK Fund

A concentrated portfolio of high quality businesses, bought at attractive valuations and held for the longer term to benefit from their strong underlying economic characteristics, will deliver superior risk-adjusted returns.

This philosophy confers a number of advantages:

• Owning high quality businesses means investors gain access to resilient business models with competitive advantages

• High quality businesses generate better outcomes, more free cash flow, and generally grow their intrinsic value over time

• In the longer term, share prices follow fundamentals. We seek to own stocks long enough to benefit from strong fundamentals

• The buy-and-hold approach allows us to be highly selective and patient in finding truly exceptional new investment ideas, while also minimising transaction costs

 Environmental, Social and Governance

• ESG is fully incorporated into the investment process
• Our partnership with Sustainalytics, a global ESG and corporate governance information provider, helps to formalise our ESG analysis and reports are considered as part of the research process
• As long-term holders of the companies in the fund, we implicitly expect management teams to run their businesses in a responsible manner
• The fund is not run dogmatically on  ESG principles but tend to have a good ESG outcome since these principles are integrated into our investment work as a very valuable risk management and appraisal tool
• Rather than take a purely box-ticking approach, we are interested in the potential impacts our companies can make.