Our philosophy entails making use, wholly or in part, of three sources of performance and risk diversification:
Strategic Asset Allocation: this lies at the heart of the investment process. It determines the key specific asset classes for client portfolios as well as our long-term view on their investment characteristics. These inputs are then applied using a variety of optimisation processes to determine a set of efficient portfolio allocations based on specified levels of risk tolerance.
Tactical asset allocation: from time to time our investment team may recommend tactical investment positions to be added to client portfolio allocations. Recommendations will be short term in nature (6-9 months) and will be appropriately scaled so to avoid any distortions to the underlying strategic positions that principally drive returns and risk.
Fund and Security selection: our investment team look to maintain a list of recommended funds and investment products that are appropriate in populating asset class exposures in client portfolios. Selection of funds will comply with the due diligence process agreed by the investment team that will encompass both the institutional provider as well as the individual fund in scope.