We believe that clients benefit from a long term strategic vision in their portfolios, combined with the flexibility to use opportunities and mitigate risks. Our multi-asset team builds portfolios by investing in securities and funds that have been researched and selected by our specialist asset class teams in-house, while our multi-manager and fund of hedge funds teams research and invest in highly skilled third party manager funds, giving us both strategic and tactical investment tools.
Our risk management controls are both specific to asset classes and characterized by clients’ own risk appetites, objectives and mandate constraints. While the strength of our investment decision-making process is predominantly qualitative, we draw on a number of quantitative inputs, particularly when working with hedge funds and multi-manager portfolios.
A focus on long-term investing
In multi-manager funds, we aim to add value by identifying and building strong relationships with those managers which we believe will excel at providing risk-adjusted performance. This approach mirrors our mainstream equity investment process, which is based on regular company visits with management. In multi-asset portfolios and the 'balanced' element of multi-manager products, we also employ top-down processes to aid strong portfolio construction and reduce risk.
First hand research is a central tenet to Aberdeen as an investment manager, and we bring the same values to bear when working with alternative investments as we do with stock and manager selection. Our process centers on face to face due diligence, repeated investment meetings to monitor and verify decisions and a disciplined attention to risks.