Problems
79%1 of active equity managers underperform net of fees
Very few asset owners properly diversify
Making and implementing decisions in an equity portfolio takes time
Potential solutions
Identify skilled managers and have them focus only on their top ideas
Improve chances of success by creating a multi-manager structure and diversify across style, size, sector and geography
Use brand and scale to potentially reduce costs
Implementation
Only our high-conviction managers
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Custom mandates, investing only in managers' top 10 to 20 stocks
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Reducing unwanted risk factors
= Maximize the potential outperformance of your equity allocation in all conditions
1 Over 5-year basis. Source: S&P Dow Jones Indices, SPIVA US Scorecard. Data as of December 31, 2021. Past performance is not a reliable indicator of future returns.
Our approach
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01
Specialist execution
We believe it is difficult to outperform equity markets, and investors tend to be impatient when their investment managers underperform. Asset owners need diversification and patience to build a resilient portfolio. We believe you need six to 12 different skilled equity managers to prevent style, geography, sector or size factors from dominating relative returns.
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02
Ideas and innovation
We believe most equity managers do not provide a strategy comprising only their best stock ideas. We seek to avoid stock fillers that dilute value and reduce total performance, giving you access to only the top 10 to 20 best ideas of each underlying high-conviction manager. This allows to capture manager skill and avoid index hugging.
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03
Value for money
We engage with investment managers. We leverage our scale and first-mover advantage by creating new mandates and seeking to offer our investors a bespoke global equity portfolio at a competitive price.
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04
Time and experience
Our portfolio management team looks to ensure a balanced combination of versatile and skilled investment managers. We actively manage the portfolio, seeking to diversify away unintended risk such as style, sector, geography or size. This enables our high-conviction managers to do what they do best, pick stocks.
