Investment Approach

Investment Process

Our portfolio construction process harnesses the specialist expertise of asset managers within a skilfully defined asset allocation framework. Managers are optimally blended together to produce multi-manager solutions designed to deliver superior risk adjusted performance over the long-term.

Our value proposition is supported by a sound investment process:

  • Sophisticated in-house designed quantitative modelling tools are used to determine the optimal long-term asset allocation for our multi-asset-class range of funds.
  • We apply short-term tactical asset allocation tilts to our portfolios where the long-term base-case outlook is actively adjusted to capitalise on prevailing market conditions, ensuring that portions of our portfolios are not vulnerable to short-term market downturns.
  • Manager selection is based on research completed via exhaustive due diligences. In-depth analysis is done on the make-up of managers' returns in search of evidence of process and philosophy at work. We look for managers who can generate robust, consistently repeatable performance and who are strong alpha generators.
  • Best of breed managers are selected who best match the identified alpha source for each respective asset class.
  • Managers are combined in the context of an overall risk budget, using clearly defined benchmarks. The risk budget, targeted returns, benchmarks, regulatory limits and other risks such as liquidity and credit risk are all taken into account.
  • We maintain neutral or acceptable tolerance to systematic risk factors within each asset class.
  • A strong emphasis on risk control is applied both at the single manager and at the aggregate portfolio level. Daily portfolio transparency allows us to monitor risks closely and react without delay, should we need to.
  • Our portfolios are actively rebalanced to generate outperformance and reduce volatility over the short and longer term.