Globally diversified portfolios that seek 1-2% excess return vs global equity and bond markets over a market cycle. Three components are used to achieve desired exposures in a risk-controlled way:
- Core (50-70%): broad and global exposure. Implemented via ultra low-cost, smart beta and ESG instruments to ensure fit for purpose exposure:
- Smart beta allows for more consistent excess return capture while ensuring diversification
- ESG results in a long-term quality and downside protection tilt, lower event risk due to better Governance, lower energy price beta and benefits from a multi-decade tailwind
- Low costs don’t need an explanation!
- Factors (10-20%): tilts rotated based on market & economic conditions using historical patterns of behavior. Value & Size outperform during recoveries, Quality & Low Vol during downturns.
- Themes (10-20%): off-benchmark exposures that we believe capture medium-term trends and major market transitions. Ex: China Hard Tech, Clean Energy, Healthcare Innovation and REITs.
- Available in USD, GBP, EUR, AUD; can be customized for relevant tax implications, and of course paired with fixed income to achieve desired level of risk.
