We apply our philosophy through a process that involves the following key steps:
- Quantifying each of the risk characteristics of an asset, including term risk, credit risk, liquidity risk, etc.
- Determining a relative value for each asset included in a portfolio.
- Monitoring markets to determine the level of yields available across the range of potential investments in our funds.
- Building portfolios that are most heavily concentrated on assets that offer a yield that exceeds required risk premia - i.e. which offer ‘value for risk’.
- Managing overall portfolio risk levels through diversification guidelines and an accumulation approach to implementing strategy changes that evaluates the strength of market trends at any point in time.