Investment Beliefs

  • Most investors are risk averse and must be rewarded for taking on more risk.
  • Long term, asset mix is the main determinant of portfolio return and risk.
  • Diversification among sources of return and drivers of risk improves portfolio risk and return characteristics.
  • In the long run, risk-adjusted returns of various asset classes are expected to be in-line with each other.
  • The risk of each asset class is not constant over time.
  • A long term investment horizon provides opportunities to earn higher expected risk premiums from illiquid assets.
  • Market timing through tactical asset allocation does not consistently add value or return.
  • Costs have material impacts on investment returns and require explicit management.
  • Investment constraints may reduce risk adjusted returns.
  • Incorporating Environmental, Social and Governance (ESG) factors in the investment process and advocating good ESG practices is in the best long-term interest of shareholders.