How we do it
Applying the greatest thinking in finance to over $1.9bn of assets.
We know that every client is different and that every client has their own tastes, preferences and requirements. Using the underlying principles laid out in our investment beliefs we have created our BuildingBlock approach to create individually tailored portfolios.
We tap respected academic studies, conduct in-house research and weigh it all against robust empirical evidence. We scour the globe for investment factors that can enhance results and select long-term risks that are rewarded over time.
Using our philosophy as first principle, we take these insights and work alongside our clients to construct and deliver portfolios using our BuildingBlock approach. The end result - portfolios that have been individually tailored based on a myriad of factors such as individual values, beliefs, needs, requirements, taxes and investment exclusions.
"People often make emotional investment decisions rather than rational ones."
A Building Block Approach
Every client is different. Every portfolio is different. We adopt a building block approach to portfolio construction. No matter the currency, the level of risk, the inclusion (or exclusion) of asset classes, we tailor portfolios to meet client needs and to ensure that clients can live with their portfolios throughout the economic cycle.
We start with the global equity universe. From here, we construct portfolios with an emphasis on long term economic fundamentals, relative price and sources of diversification rather than simply relying on market capitalisations.
We generally use low-cost asset class funds or Exchange Traded Funds in order to generate exposures within countries, asset classes or investment factors.
Our investment approach leverages academic theory and high quality empirical evidence to integrate Smart Beta strategies into our portfolios.
This results in tilting portfolio exposures away from broad-based market indices towards multiple investment factors so we make more risk efficient decisions on behalf of our clients.
Beyond Equities and Bonds - Total Return
Smart Beta strategies do not stop at long-only portfolios. By incorporating Total Return strategies into portfolios we add to the number of independent return engines contributing to portfolio returns. Strategies such as multi-factor style premia and market momentum complement the portfolio and serve as additional building blocks to the traditional long only Smart Beta portfolio.
For those clients that can afford and understand the possible repercussions of investing in assets that have degrees of illiquidity, we look towards the alternative credit asset class to enhance returns. The alternative credit asset class has become increasingly ever-present in client portfolios over the last decade as investors become accustomed to ultra-low interest rates. Investing in alternative credit is not without risks and as such is only included in the portfolios of clients who display relevant knowledge and experience and for whom the investment is suitable.
Our consistent, disciplined, rules-based framework utilises strategic and dynamic rebalancing to seek excess returns across asset classes over a market cycle. This systematic, repeatable process powers the portfolios we build for our clients.
This investment principle underpins our courage to adopt a contrarian approach when the rationale is strong and when conventional wisdom tells us to look the other way.
On top of tailoring portfolios and understanding dimensions of risk we also spend considerable time educating our clients on how markets work and how risk is linked to return potential.
With education, we believe our clients will be well equipped to withstand the slings and arrows of the markets on their path towards a successful, long-term investment experience.
Graham and Dodd Scroll Award
In 2017, Helge Kostka, Chief Investment Officer at MASECO Private Wealth, won the prestigious Graham and Dodd Scroll Award of Excellence from the Chartered Financial Analyst. The prizes have been awarded since 1960 to recognise excellence in research and financial writing in the Financial Analysts Journal. Fellow Graham and Dodd winners include Nobel Laureates such as Robert Shiller and Eugene Fama.