Investment Approach

Investment Approach

Benchmarking
Investment Solutions aims to achieve consistent benchmark outperformance over a three-year cycle. We invest with external managers to provide best of breed multi-manager portfolios. Within a world full of complexity and distraction, we consciously keep the investment process simple to ensure that we remain focused on the important issues.

Adaptive Market Hypothesis
We believe in the Adaptive Market Hypothesis and this theory is evident throughout our investment process and philosophies.

• Active management outperforms over time.
• Flexible diversification of fund manager styles and approaches enhances returns.
• Markets, investment styles and asset prices often deviate significantly from equilibrium levels, leading to distortions that can be capitalised on.

Investment Process
Investment Solutions follows a five-step investment process, which makes use of three independent, proprietary Manager Assessment and Ranking Systems (MARS models). These MARS models are multifactor models that have been developed and refined over time to assist with manager selection and allocation decisions.

Step 1: Initial portfolio design
Step 2: Manager research (MARS models)
Step 3: Portfolio construction (MARS models)
Step 4: Investment decision-making (Investment Committee)
Step 5: Ongoing monitoring and reviewing