How we invest
- Operating globally with offices in Europe, US and Asia, we provide clients with specialist access to a range of alternative and pan-alternative investment solutions
- Adhering to a consistent philosophy and investment process first-hand research is at the centre of our approach
- Investing in alternatives can offer a range of benefits including the potential for enhanced returns, reduced volatility and additional tail protection, in some cases
Hedge funds represent a wide range of different strategies that invest in traditional asset classes, but in a non-traditional way.
The types of risk/return profile available from hedge funds vary greatly.
To get the most out of a hedge fund allocation, investors need a deep understanding of the characteristics that a particular strategy will bring to an overall portfolio. This could be increasing or reducing overall risk, through styles that either act as substitutes for existing risk exposures, or diversifiers away from them.
We have a long and successful track record of building multi-manager hedge fund portfolios.
We do this through:
- In-depth and propriety strategy research & manager selection
- Dedicated operational due diligence and risk assessment
- Specialist portfolio construction teams and systems
Infrastructure investment offers the potential for attractive risk-adjusted returns; reliable inflation-linked returns; stable long-term yields and capital growth.
There are also the added benefits of defensive characteristics emanating from the provision of essential services and potential value enhancement through active asset management.
The current uncertainty in the economic environment highlights the benefits that such investment can bring to an investor’s portfolio.
In addition to being able to provide clients with exposure to third party infrastructure investments via our private markets multi-manager capabilities, we have a specialist direct infrastructure group focused on greenfield infrastructure projects that are underpinned by long-term government contracts.
The direct infrastructure team has a long, established track record and operates out of our offices in London, Edinburgh, Paris, Madrid and Sydney.
- Combines the experience of our strategy specialist teams to meet the bespoke needs of individual clients (e.g. real returns)
- Includes allocations to liquid and illiquid markets
- Provides flexibility
In some situations, a sophisticated efficient capture of market returns is the most important objective for an investor.
Our Quantitative Investment team manages a range of products to satisfy a variety of requirements:
- Passive strategies that target the return of a traditional market capitalisation benchmark, such as the FTSE All Share Index
- Our pragmatic replication approach manages the costs of replication as well as the matching of benchmark return in an optimal, scalable, repeatable and risk-controlled process
- Strategies that seek to provide consistent exposure to a fundamental index, rather than a market capitalisation index
- In particular we manage a range of strategies linked to the FTSE RAFI™ family of indices, providing exposure to the UK, Global and Emerging Markets respectively
- Aim to exploit market inefficiencies to generate small excess returns relative to the benchmark, for a similar level of risk.
- Taking an index as the starting point, our investment process models equity strategies such as value, prudent management, financial strength, trend and others, to identify a strong investment rationale or theme that in back testing, has demonstrated outperformance over a business cycle
- It then combines these proprietary strategies to tilt the portfolio according to the identified theme targeting a consistent risk-adjusted relative return
We also manage a range of bespoke derivative and structured products.
Property provides the potential for a range of benefits from income, growth, value add through active management and development, with a real asset underpin.
However, it requires large investment amounts and resource-intensive management to access directly; trying to invest directly on a global basis can also introduce legal and tax complexity.
As a result, many investors prefer to invest via funds and funds of funds, to best capture the breadth of opportunities available.
A multi-manager approach, in particular, can provide investors with access to high quality property funds and managers, offering exposure to any or all of debt and equity, prime and secondary locations, domestic, regional and global investments, and operating assets or developments.
Underpinned by three pillars:
- Running a quality investment process that is simple, robust and focused on risk management and transparency
- Providing quality investment solutions for our clients, including a range of commingled funds
- Seeking quality, best-in-class managers to drive long-term returns