Strategies

Dynamic Diversified Growth

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

Philosophy

A constantly changing market environment, regulatory constraints and the impact of longevity present significant challenges for institutional investors. Given these challenges, we recognise that our clients seek a greater predictability in investment returns and to avoid high levels of volatility. Dynamic Diversified Growth (DDG) was developed in 2001 with the objective of helping meet these needs.

Process

DDG seeks to generate consistent positive returns across a range of market environments. Crucially, it aims to deliver these returns with significantly lower volatility than could be expected from an equity portfolio. While neither of these aims can be guaranteed and portfolios may be exposed to losses, we believe the approach offers investors the potential for:

  • More dynamic asset allocation: The key to achieving long-term growth is to invest across a wide range of assets and to take a dynamic approach to asset allocation. In DDG, the selection of assets held changes according to the market environment. Unlike traditional balanced funds, this approach is structured to avoid reliance on equity returns to generate long-term growth and therefore may deliver more balanced results.
  • Diversified sources of return: Diversification and asset allocation play an important role in mitigating risk and, on balance, can add meaningful value. As an unconstrained strategy, DDG has the ability to ‘go anywhere’ in search of undervalued assets. The aim is to deliver value through a highly diversified portfolio, built on fundamental research and implement using precisely tailored instruments.
  • Focus on generating consistent positive results: Volatility of returns is dictated mainly by a portfolio’s asset allocation. the focus is on constructing portfolios that seek to generate positive returns across a wide range of market conditions.. DDG is underpinned by highly sophisticated risk management technology, while having a proprietary platform in itself this does not eliminate risk, it may help minimising losses in times of market stress.