Our approach to allocating assets accounts for three timeframes; this enables us to keep our eye on the long-term risk/return objective, while remaining agile enough to actively move between asset classes to respond to changing market conditions.
The fund mandate is set up in line with the risk/return requirements of the portfolio. We identify optimal long-term benchmark asset allocations to achieve this profile. This takes into account the historical real returns achieved by different asset classes over the long term, and how they interact.
Analysis of the global macroeconomic environment identifies themes that will drive the markets. Assets that will deliver positive performance in those conditions are identified and bought. We have unique skills in this regard as well as access to a formidable database to help determine our strategy.
Investment agility offers the potential to outperform our peers over the short term by exploiting mispricing opportunities presented by the market. Out analysts are constantly on the lookout for these opportunities.