Our integrated approach requires us to make asset allocation as well as selection decisions. This is done within the framework of our theme and price philosophy.
Macroeconomic and thematic drivers have a massive influence on the future performance of an asset class or a share. A key part of our process is to evaluate the impacts of these top-down drivers (i.e. themes).
Fundamental valuation drives long-term asset prices. Simply put: We avoid buying an asset at a price that exceeds its fundamental value.
It is critical to have a long term view, as this provides context for the current short-term movements.
In building portfolios, we take the interaction of positions across and within asset classes into account. It is the portfolio manager’s responsibility to ensure that the exposures within asset classes are coherent at an overall portfolio level.