Portfolio Construction

Portfolio Construction

Our investment process is built on the fundamentals of capital preservation, provision of requisite liquidity, and the generation of competitive returns. In addition, we integrate Environmental, Social and Governance (ESG) factors into the process which we believe helps to make us better investors by enabling us to select issuers that have taken the greatest steps to consider and mitigate their exposures to ESG risks.

A great number of investors tend to take a siloed approach to investing. This often results with cash being viewed as separate distinct market, and often poor cousin, to fixed income. We use our extensive fixed income experience augmented by our unique analytical edge we have through our proprietary data analytics system CaTo to help break down these silos. This approach helps us to identify value opportunities across the full fixed income spectrum to enhance our performance without sacrificing credit or liquidity.

Diversification is at the heart of our portfolio construction both at issuer, issuer type, geography and individual investment levels.  We believe that this approach reduces overall portfolio risk, improves liquidity and enhances return and as such diversification is a key goal across our funds.

Natural liquidity is also core to our philosophy and we ensure that we have a suitable amount (commensurate with individual client requirements or fund type) of natural liquidity, through asset maturities, flowing through portfolios.