Our perspective
Asset management
An understandable connection between a portfolio mandate, an investment process and the reasons behind each decision.
Mandate
Know what the portfolio is for.
Objectives, investment horizon and constraints should be established together. A mandate should explain how progress will be assessed, what uncertainty can be tolerated and when a review is required.
Construction
Consider how the parts interact.
An investment cannot be understood in isolation from the portfolio around it. Liquidity, concentration and relationships between holdings affect the overall position. Diversification does not eliminate the possibility of loss.
Accountability
Explain the reasoning.
Our intended discipline emphasises a documented investment case, an understandable account of risk and a clear view of costs. Reporting should explain what has changed and how the position relates to the agreed purpose.