Our investment philosophy focuses on meeting the twin objectives of capital preservation and capital appreciation over the long term. We do this through an investment strategy that considers diverse sources of return while being risk aware. The outcome of this process is to deliver real returns that corresponds with your risk appetite.
We maximise risk adjusted returns for our clients at both asset class and asset allocation level. Our investment process is based on the conviction that returns are obtained through a combination of the correct strategic asset allocation, tactical asset and stock selection.
We value each asset class to identify mispricing opportunities which can be captured either via stock selection within an asset class or through our asset allocation process when comparing across asset classes.
Our team-driven and prudent investment process is applied across all our investment decisions, mandates and funds, with individual accountability given to portfolio managers managing your money. We follow a systematic, fundamentally based approach to investing, which allows us to avoid behavioural biases.
Top down and bottom up
We believe that asset prices are driven both by macro factors (top down) and bottom-up fundamentals. By analysing local and global economic data, we identify trends that will influence asset prices. Our investment approach is built on three principles:
Macro
We use macroeconomic factors to identify trends that inform our investment decisions. We use a range of market data with a number of proprietary forecasts.
Quality
We invest in quality assets that can deliver superior returns over the long term. When defining quality, we focus on three main factors:
- High returns compared to peers and cost of capital
- A strong balance sheet
- Strong operational cash flow generation
We prefer market leaders with strong management structures operating in industries with high barriers to entry and structural growth.
Valuation
Our asset class specialists use a bottom-up valuation approach to determine the best possible combination of asset classes to deliver on your real return targets, while optimising your risk.
We also account for ESG (Environmental, Social and Governance) factors when evaluating the sustainability of companies’ returns in the long term.