Essential to our investment process are our core investment beliefs.

The investment beliefs shape the way that our investment team behaves, how it interacts with external providers and it how it reaches decisions.

Portfolio management

Portfolio management should be focused on the specific objectives and risk definitions of the Fund. 

Single portfolio

Portfolios are most efficiently managed as whole, rather than as a collection of individual underlying sub-portfolios.

Risk management

The assessment and management of risk should emphasise qualitative considerations, through a deep understanding of the investment environment and its potential impact on the portfolio. Quantitative measurement is considered an important tool to both support and test this process.

Dynamic management

Prospective returns and risks vary materially over time in a way that is at least partially observable and hence exploitable. The amount of risk taken should therefore be managed dynamically as conditions change.

Market-related risk

Our focus should be on the appropriate level of market-related risk because it is a stronger driver of long-term total portfolio risk and return than skills-related risk.

Diversification

A higher expected return per unit of risk (investment efficiency) can be obtained from a broadly diversified allocation across different return drivers. In addition, the long time horizon supports a tolerance for illiquid assets.

Inefficient markets and adding value

Markets can be inefficient, albeit that the degree of inefficiency varies across markets and over time. Skillful management can add value after fees, and such added value can be uncorrelated to market returns over time and can therefore be highly beneficial to the total portfolio investment characteristics. Capturing skill-based returns requires an appropriately resourced and disciplined process.

Costs

The management of costs is very important to maximising returns.