Our investment process is guided by the ethos of flexibility, transparency and control.
Our experience has been that adhering to these has enabled us to successfully navigate even the most challenging of market environments.
The flexibility of our approach, specifically the broad opportunity set from which we choose our investments, and the extent to which we make asset allocation adjustments, allows our strategy to adapt to changing market conditions.
The transparency of our investment process allows us to constantly assess whether our investment tool-kit is sufficiently robust or needs adjusting to capture new relevant market information.
We continually monitor whether our portfolio positioning needs adjusting when faced with new market information. This is an iterative process and it often reveals areas to focus on from a trade or idea generation standpoint. It also highlights why particular investments should have higher priority (from a research and/or trading perspective) than others when they are viewed within the context of how they will adjust our ex-ante distribution of returns. This clarity facilitates a high level of control, enabling us to be confident in our ability to manage downside risk via the numerous safety nets we employ within the strategy.
We show a summary of our investment selection process below:
This innovative approach, of combining access to a broad opportunity set with a dynamically managed asset allocation, has allowed us to deliver attractive risk-adjusted returns. With consideration to volatility or drawdowns, this approach has historically generated a return that is comparable with global equity markets but with significantly lower annualised risk.
As at 30 September 2019. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients.
The value of investments and any income from them will fluctuate and is not guaranteed (this may partly be due to exchange rate fluctuations). Investors may not get back the amount invested. Past performance is not a guide to future performance.
Derivatives may be used to generate returns as well as to reduce costs and/or the overall risk of the portfolio. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
Investments in bonds are affected by interest rates and inflation trends which may affect the value of the portfolio.
The investment manager may invest in instruments which can be difficult to sell when markets are stressed.
Property assets are inherently less liquid and more difficult to sell than other assets. The valuation of physical property is a matter of the valuer's judgement rather than fact.