Multi-asset strategies are targeted to meet a range of investment objectives which reflect our diverse client base, including pension plans, insurance companies and sovereign entities.
Our portfolios aim to generate a smoother return streams by diversifying across markets, asset classes, geographies and investment styles and by managing strict risk budgets.
Our multi-asset range of strategies covers: traditional balanced, risk targeted, flexible and income-oriented portfolios, specialised techniques (style factor) and portfolio protection.
Our multi-asset investment philosophy is based on the belief that:
Markets are inherently inefficient over the short to medium term
Asset prices exhibit excess volatility, relative to fundamentals, often leading to market mispricing
However, markets can be expected to revert to a measure of 'fundamental value' over the long term
We believe active asset allocation based on valuation can exploit this market over-reaction and mean reversion
Asset allocation is the key driver of portfolio return and must be dynamic
Following on from this philosophy, we aim to develop:
Robust valuation metrics to review the long term return potential on all available asset classes, on an on-going basis
An investment strategy that is adjusted accordingly, shifting portfolio allocations toward asset classes with the best prospective risk-adjusted returns
Fulfilment that aims to capture the beta characteristics of the targeted asset classes on a cost efficient basis
To achieve this we:
Use asset valuation tools in a systematic way to project future asset class returns
Construct a dynamic asset allocation policy to exploit shifts in prospective returns across assets
Employ a robust optimisation process, enhanced by considered qualitative judgement, and a disciplined rebalancing of portfolios
Carefully manage portfolio risk as well as return potential
Choose the most efficient instrument for execution from a risk, return and cost perspective
The investment process for our core multi-asset solutions consists of three key stages:
Strategic Asset Allocation (SAA) – setting the portfolio's reference allocation
Tactical Asset Allocation (TAA) – risk aware active positions against the portfolio's SAA, reviewed frequently to ensure portfolio dynamism
Portfolio Construction – implementation of the portfolio's TAA
We leverage the insights of a wide range of global teams: macro economists, equity and fixed income investment teams, research specialists that focus on portfolio design and analytics, and product specialists in London, Paris, Toronto and Hong Kong
Our strategies benefit from years of experience in advising clients on investment guidelines, benchmarks and risk tolerance criteria, together with an extensive knowledge of local regulation and industry trends
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.
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Terms and conditions
This Site is intended for institutional investors in Hong Kong only.
The Funds invest in various investments, such as equities, bonds, money market instruments, collective investment schemes and alternative investments. Each fund has a different investment objective and risk profile.
The Funds may subject to the risks of investing in emerging markets and smaller companies; and may subject to the concentration risks when the investments are concentrated in one or a small number of markets or sectors.
The Funds may invest in non-investment grade bonds, unrated bonds, contingent convertible securities, mortgage backed securities, asset backed securities and urban investment bonds issued by PRC local government financing vehicles (LGFVs) which are subject to additional risks and volatility.
The Funds may have substantial investments in securities issued by a single sovereign issuer (including but not limited to issuer with a non-investment grade credit rating) and are subject to higher concentration risk, sovereign risk and credit risk.
The Funds may gain exposure to hedge fund, absolute return strategy, private equity, real estate sector and Real Estate Investment Trust (REIT) which are subject to additional risks and volatility.
The Funds may invest in onshore Chinese securities through various market access schemes and China A-shares Access Products. Such investments involve additional risks, including the risks associated with China's tax rules and practices.
When investing in Indian bonds, the Funds may need to comply with the licensing regulations in India and may subject to additional risks, including quota restrictions and tax risks.
The Funds may invest in other funds and need to bear the underlying funds' fees and expenses on top of the Funds' own fees and expenses.
The Funds may invest in financial derivative instruments for investment purpose which may lead to higher volatility to their net asset value.
The Funds may pay dividends out of capital or gross of expenses. Dividend is not guaranteed and may result in capital erosion and reduction in net asset value.
Because the Funds' base currency, investments and classes may be denominated in different currencies, investors may be affected adversely by exchange controls and exchange rate fluctuations. There is no guarantee that the currency hedging strategy applied to the relevant classes will achieve its desired result.
Investing in money market funds are not the same as placing funds on deposit with a bank or deposit taking company. The Funds which are money market funds have no obligation to redeem units at their offering value and such Funds are not subject to the supervision of the Hong Kong Monetary Authority. Investors may not recoup the original amount invested in the Funds.
The Funds' investments may involve substantial credit, currency, volatility, liquidity, interest rate, tax and political risks. Investors may suffer substantial loss of their investments in the Funds.
The Funds are NOT equivalent to time deposits. Investors should not invest in the Funds solely based on the information provided herein and should read the offering document of the Fund for details.
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