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 traditional assets where we can access returns from equities, fixed income and real assets (commodities, real estate and securitised credit). We also have scope to invest in a range of alternative assets and strategies that offer return profiles which are different from traditional assets.
We believe that combining traditional sources of return with alternative sources of return widens our opportunity set, extends diversification and improves our potential to deliver more consistent returns as we progress through an economic/market cycle.
Dynamic asset allocation
We take a highly dynamic approach to allocating our exposure guided by the process described previously, which allows us to assertively move our exposure towards asset classes or strategies where we foresee a favourable forward-return profile and away from those with the opposite characteristics. As a result, our exposure to individual asset classes and strategies can vary across a wide range, and indeed, can be zero when we expect negative risk-adjusted returns.
We strongly believe that having wide flexibility in terms of managing the size of our allocation to different asset classes and strategies is vital in terms of capturing potential returns and helping to manage downside risk as we aim to deliver a smoother path towards our targeted return objective.
As at 30 September 2020. 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.