Our approach
The management of a portfolio’s asset allocation is central to our investment philosophy, investing across multiple asset classes to maximise risk adjusted returns.
The construction of a portfolio is a three part process - strategic asset allocation, tactical asset allocation, and investment selection.
Strategic asset allocation
We derive a strategic asset allocation for each client. This reflects the longer term structure of the portfolio and is based on the client's specific risk tolerance and financial goals.
Tactical asset allocation
Our Investment Committee reviews macro-economic events and the expectations for the future performance of asset classes. Based on these views, portfolios are adjusted tactically to try and maximise risk adjusted returns.
Investment selection
We use both active and passive investments in portfolios. The default investment is normally passive in nature, such as an index tracking fund, but active investments are held where we believe superior risk adjusted returns can be generated.
Investment selection
We invest across multiple asset classes including traditional investments such as equities, bonds and cash, as well as alternative investments like private equity, hedge funds, infrastructure, commercial property and commodities.
The universe of opportunities is vast but can be simplified into:
Passive Investments
track an index
Actively Managed Funds
look to outperform on a risk adjusted basis
Special Situations
seek to offer big upside asymmetry
