SWIP outperforms with unconstrained UK equity approach

Scottish Widows Investment Partnership's (SWIP) unconstrained UK equity product continues its stellar performance.

Unrestricted by a specific benchmark, the success of SWIP's portfolio is measured against the performance of the median share of the FTSE100 on a yearly basis ending in October. During its first year, SWIP's portfolio achieved an impressive return of 33.6% compared to the median share return of 29.5%. SWIP's portfolio has also significantly outperformed the FTSE All Share by 12% over this time period.

The portfolio is managed by Robert Waugh, Head of UK Equities at SWIP who has over 19 years experience of managing UK equities for institutional pension fund clients. Ro bert draws on the skill and experience of SWIP's highly regarded UK equity team to construct a diversified portfolio of 25 to 40 stocks. The portfolio reflects the stocks in which the team has the highest level of conviction.

SWIP's success is based on its disciplined research process which focuses on identifying the best opportunities through in-depth fundamental analysis, forecast over a five-year period. By taking a longer view than the market, SWIP believes its research-based approach gives it a significant advantage over the competition.

Robert Waugh, Head of UK Equities at SWIP commented: " Increased market concentration has encouraged investors to consider unconstrained investment approaches to meet their objectives. A key factor which distinguishes SWIP's approach to unconstrained investing from the competition is the emphasis we place on in-house fundamental research, with each of our fund managers also taking on sector research responsibilities. The objective of this unconstrained portfolio is to outperform the median stock of the FTSE 100 on an annual basis. Working against a performance target such as this, ensures that only our strongest conviction ideas are included in the portfolio" .

Ominder Dhillon, Head of UK Institutional Business at SWIP, commented: "SWIP's UK Equity team has come a long way over the past few years. We have established a strong and stable team under the leadership of Robert Waugh and are able to attract and retain some of the best talent in the industry. The performance of the team speaks for itself and we continue to see increased interest from institutional investors who are recognising SWIP's capability in managing UK equities."