We believe strongly in the value of an identifiable investment discipline.
Asset allocation is a function of a combination of fundamental and technical tools. Economic indicators guide the propensity to market weight, under weight or over weight the various asset classes while technical indicators dictate the timing of switches.
Our belief is that bonds are an asset allocation tool for preservation of capital, not primarily for income. In an environment where there is a small difference between income from bonds and inflation, on relative terms there is a much greater margin for error. We model bonds to match a targeted benchmark and deliver performance with minimal tracking error.
Our equity approach uses proprietary quantitative analysis with a track record that dates back to 1980, featuring a ranking system based on 22 individual models in four broad categories: value, momentum, growth and predictability. Models comprise components of, amongst others, revenue, earnings, dividends and dividend growth, asset base, return on equity and reliability of earnings and revenue.