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Tailored for investment professionals this site provides information on our products, strategies and services. Please remember capital is at risk and past performance is not a guide to the future. We use cookies to ensure that we give you the best experience on our website. This includes cookies from third parties. Such third party cookies may track your use of our website. By continuing you are confirming that you are happy to receive all cookies on our website. Please refer to our Cookie Policy for further information, including steps to take to disable cookies.

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Value Investing

“We scour the market for unloved, misunderstood or forgotten stocks”

- Alastair Mundy, Head of Value

We have a deep and long association with the Value investment approach. Value investing seeks to isolate investment opportunities suffering from poor market sentiment, at which point they are rigorously researched to identify the best investment opportunities. By going against the general market consensus, Value investors aim to buy companies that are unloved by other investors and are therefore ‘cheap’, in the belief that they will return to favour, thereby increasing their share price – at which point they are sold.

The contrarian mindset aims to understand why conventional wisdom might be wrong. By approaching stocks in this manner, we can focus on the positive aspects in the belief that many of the negatives are already discounted in the share price. We attempt to visualise each company’s future unencumbered by its current short-term problems. This will typically lead us to focus on areas which had previously been highlighted when the consensus was bullish, but which have since been side-lined and ignored as more recent news flow takes precedence.

Depending on your clients’ objectives, Value funds could be suitable to blend with existing growth/quality allocations as part of an overall, diversified portfolio.

See our range of Value Funds

Investment process

The Value team at Investec Asset Management employs a disciplined investment process, making long-term investments in cheap, out-of-favour companies with appropriate balance sheets. They undertake deep, fundamental analysis to identify potential investments and as investors, are highly downside aware. They aim for long holding periods and ensure that portfolios across the Value range contain a diversified blend of companies, with different characteristics, at different stages of recovery, in different sectors.

Latest insight

The Buckets of Value Investing

From Fallen Angels to Deep Value, Alastair and Alessandro explain the five categories, or ‘buckets’ they use when categorising the out-of-favour companies they seek for their Value portfolios.

Thoughts and musings from a Value investor

Read Alastair's latest posts and sign up to receive regular updates

Learn more

Alastair Mundy

Why Investec Asset Management for Value?

Describing themselves as ‘relentless investigators’ the Value team, headed up by renowned Value investor Alastair Mundy, comprises portfolio managers and analysts all of whom follow a consistent, disciplined process to assess all investment opportunities when constructing portfolios.

  • They seek to be rational when other investors are irrational
  • They take a value approach but are very index aware
  • They undertake deep fundamental analysis
  • They are highly downside aware.

“We have found no trustworthy shortcut over the years to separate ‘the dogs from the delightful’. The long cut involves much hard work”

- Alastair Mundy, Head of Value

Our range of Value funds

A range of Value funds positioned with the aim of taking advantage of today’s uncertain markets.

General risks

The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth.
Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations.
Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made.

Specific Risks: The following risk apply as specified;

All funds mentioned above:
Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.

Temple Bar Investment Trust:
Borrowing/leverage risk: The Company can borrow additional money to invest, known as leverage. This increases the exposure of the Company to markets above and beyond its total net asset value. This can help to increase the rate of growth of the fund but also cause losses to be magnified. Charges to capital risk: A portion (60%) of the Company’s expenses are charged to its capital account rather than to its income, which has the effect of increasing income (which may be taxable) whilst reducing its capital to an equivalent extent. This could constrain future capital and income growth.
Company share price risk: The Company’s share price is determined by supply and demand for such shares in the market as well as the net asset value per share. The share price can therefore fluctuate and may represent a discount or premium to the net asset value per share. This can mean that the price of an ordinary share can move independently of the market

Global Special Situations Fund:
Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.Cautious Managed and Global Special Situations Funds: Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income.

Cautious Managed Fund:
Default: There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.

UK Special Situations and UK Total Return Funds:
Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow.

Cautious Managed, UK Special Situations and UK Total Return Funds:
Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.

Cautious Managed and UK Special Situations:
Government securities exposure: The Fund may invest more than 35% of its assets in securities issued or guaranteed by a permitted sovereign entity, as defined in the definitions section of the Fund’s prospectus.

Cautious Managed Fund, Temple Bar Investment Trust:
Interest rate: The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.