Investment process

In choosing portfolio strategies, we apply a 3-stage process that capitalises on an array of research and investment techniques, and draws together the investment insights of all our portfolio managers.

Idea generation

We generate investment ideas by utilising the macroeconomic investment themes used by our award winning Multi-Asset Investing Team in our successful Global Absolute Return Strategies Fund, alongside the tactical investment strategies adopted by our highly-experienced Fixed Income Team.

Each strategy is selected following a rigorous research process including fundamental macroeconomic analysis, quantitative research and valuation modelling. They are then assessed from an expected risk, return, diversity and liquidity perspective. In addition, our risk experts analyse all ideas to understand the impact a new strategy will have both in isolation and on the portfolio as a whole.

Oversight

Strategies are reviewed and approved by our Bond Investment Group, which contains some of our most senior investment professionals. They base their approval on three key criteria:

Conviction – expectation the strategy will add material value for a reasonable level of risk
Diversity – strategies must mitigate key risks associated with other positions in the portfolio
Liquidity – significant positions must be implemented or altered with limited portfolio impact.

Implementation

We implement approved investment strategies efficiently and effectively using standard market instruments, i.e. direct investment and derivatives. The management team also makes active asset allocation decisions and ensures the portfolio meets robust risk management constraints.