Our key principles
We believe we have an innovative and differentiated approach which is characterised by two key principles:
- Having the flexibility to invest across a broad range of asset classes and strategies with the aim of generating returns and spreading risk.
- A dynamic approach to asset allocation, only investing in asset classes or strategies where we see potential for a positive return and actively shift exposures as the opportunity set evolves.
We bring these principles together within a multi-dimensional risk framework with the aim of delivering a smoother path of returns over time.
Accessing a broad opportunity set
Our investment universe includes both traditional asset classes where return is reliant on market performance, such as equities, fixed income, and real assets (commodities, real estate and securitised credit), and alternative asset classes and strategies that can be less reliant on rising markets.
We believe that combining traditional risk premia with alternative forms of risk premia widens our opportunity set, extends diversification and improves our potential to deliver more consistent returns as we progress through a typical economic/market cycle.
Dynamic asset allocation
Our asset allocation decisions are driven by three key factors: valuations, the economic environment, and market positioning.
The level of our exposures is not tied to an asset class-weighted benchmark and our minimum exposure to asset classes can be zero. This flexibility allows us to assertively move our exposures between a variety of traditional and alternative risk premia over time. Simply put, we have wide scope to participate in markets which we consider are trending higher, but switch our bias towards to less directional strategies in more volatile or falling market environment.
A multi-dimensional risk framework
We bring these principles together within a multi-dimensional risk framework with the aim of delivering a smoother path of returns over time. Strict limits are in place with respect to overall levels of portfolio risk. In addition to this, we apply downside risk controls at the specific investment level which are tuned to the different characteristics of those investments. These disciplines aim to ensure that we run appropriate levels of risk and that any losses from individual positions are kept within tolerable bounds.
As at 31 December 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.