We believe that markets are the primary drivers of investment returns and that index management is an effective, core investment solution for well-diversified, publically traded asset classes.
We enhance the low cost nature of index delivery by portfolio management techniques that focus on reducing implementation costs as well as capturing meaningful opportunities via events improperly reflected by benchmarks such as discounted dividend reinvestments and share placements.
While we believe that financial markets are broadly efficient, opportunities to add value still exist by skillfully exploiting various risk premia caused by investor behavioural biases.
These opportunities manifest over various time frames spanning longer-term signals (such as valuation and sustainable company quality), medium term signals (such as analyst sentiment), and short-term signals (incorporating price movements and company news flow). The stock selection signals (alpha drivers) are founded on traditional investment insights.
Combining these complementary signals through robust portfolio construction techniques and efficient implementation leads to better risk-adjusted return outcomes in the long-term.