Investment Process

We use a five-step investment process to identify assets that offer attractive investment potential in terms of our pragmatic value philosophy:

Step 1: Screening
We run a range of screening tools on a regular basis to identify investment opportunities. In terms of equity and fixed interest investments, the screening tools have been developed in house and are run by the quantitative team. When it comes to asset allocation screening tools, these are developed and maintained by the asset allocation, research, equity and fixed interest teams in combination.

Step 2: Fundamental Analysis
The equity and fixed interest research teams develop investment strategies to meet defined client objectives, whereafter fundamental analyses on individual stocks and fixed interest assets is conducted. The asset allocation team conducts in depth fundamental analyses on the markets from a macro perspective,

Step 3: Portfolio Construction
Portfolio positions are sized based on the relative over and undervaluation of the different asset classes relative to the fair value of the asset through all market cycles. Potential securities are then narrowed by assessing relative value, quality, and security to identify potential candidates for investment.

Step 4: Risk Control
The risk exposure of investments in our portfolios is evaluated on a regular basis. In terms of equities, risks are analysed by using factor analysis, and are constantly monitored for deviations in risk, volatility and portfolio momentum.

Step 5: Performance Analysis
During the last step we closely review performance in order to measure the actual and marginal contribution to active risk of each opportunity, including overall yield and returns.