ABOUT US
ABOUT US
GOALS
INVESTMENT PHILOSOPHY
The core of our risk management process is understanding that there are inter-dependencies between risks. In a market crash, asset classes that are commonly believed to be diversifiers to equity exposure may also experience significant loss if they are exposed to similar drivers of risk. Therefore, we first break asset classes up into the main drivers of the variability in their returns (i.e. their risk factors) and then construct portfolios based on these specific risk factors. This allows us to construct portfolios that are better diversified across the various drivers of portfolio risk.
OUR CORE BELIEFS
Returns matter, but behaviour matters more
Price drives long-term returns
Asset allocation is the most effective tool for managing risk
Asset class risks are driven by their underlying risk factors
Diversify by underlying risk factor, not asset class
Diversify when it makes sense, not merely for the sake of it
Build robust rather than optimal portfolios
OUR PORTFOLIO CONSTRUCTION PROCESS
A brief overview of our portfolio construction process is below:
LONG TERM FORECASTS
SPECIFIC RISK CONSTRAINTS
ROBUST OVER OPTIMAL PORTFOLIOS
SHORTER TERM RISK FORECASTS
STRESS TESTS
COMMON SENSE OVERLAY
To download a PDF copy of our portfolio construction process, please click the link here.
OUR INVESTMENT VEHICLE SELECTION PROCESS
A brief overview of our investment selection process is below:
RISK FACTORS DETERMINED
SCORING CRITERIA APPLIED
MAXIMUM FEE SCORE APPLIED
REVIEW RESEARCH HOUSE RATINGS
DIRECT MANAGER REVIEW
MOST ROBUST MIX SELECTED
The most robust mix of managers is selected based on the after fee expected performance with the other strategies in the portfolio
REPORT DISTRIBUTED
To download a PDF copy of our investment selection process, please click the link here.