Our philosophy is what we do and our process is how we do it: practising what we preach. Rigour and intuition are combined in a fluid and continuous process that brings both structure and flexibility to our management of funds.
The investment team collectively conducts the MONTHLY MACROECONOMIC REVIEW. In this forum, key global and local macroeconomic variables are evaluated and forecast for a period of up to three years. Always alert to the risk of being wrong, the levels of the macroeconomic variables at which specific action must be triggered are evaluated.
We try to get the big calls right by reviewing our INVESTMENT STRATEGY at least quarterly. In this part of the process, the Chief Investment Officer (assisted by the collective inputs of the portfolio managers) considers the long-term outlook and possible scenarios determined by the macroeconomic review process. On this basis, portfolio asset allocations and sector allocations are determined to achieve the necessary diversification.
On an ongoing basis, the investment team’s analysts conduct COMPANY RESEARCH, bringing the investment strategy and macroeconomic review to bear on models that consolidate the results of earnings forecasts, industry analysis and meetings with individual company management. Analysts also research the bond, money market and listed property universe.
The detailed company research is summarised in a RELATIVE RANKING TABLE which sorts the proverbial wheat from the chaff and sets out the preferred investment choices. A preferred investment choice is one that offers favourable prospects at a price worth paying – that is one that offers a material margin of safety to protect against the future risk of loss.
Mindful of investor requirements and objectives, INVESTOR PORTFOLIOS are implemented and continuously evaluated (and where necessary, altered) by the portfolio managers using the results of the dynamic investment process. Portfolios are constructed independently of any specific benchmark index and appropriately diversified to reduce the risk of loss.
The result of the investment process is a portfolio reflecting high conviction in our best investment ideas but which is diversified against the risk of an incorrect view so as to protect the capital of investors across all market cycles.