We offer fiduciary services to large institutions such as pension funds and insurance companies focusing on the essential investment decision: setting the asset allocation. Our approach combines a dynamic asset allocation with mainly passive managers and an ESG-exclusion overlay. Our approach can be tailored to meet any risk budget or ESG-policy.
institutional Asset allocation.
Few managers are able to deliver strong performance in the long run. There is a need for investment strategies that can deliver attractive risk-adjusted returns through the business cycle. Our outperformance tends to be greatest in bear markets, which leads to outperformance in the long run. Exiting expensive markets early and avoiding large drawdowns is the best strategy for sustainable returns.
Our dynamic asset allocation investment approach was developed in 2000 in order to help institutional investors - mainly Dutch pension funds - achieve their investment objectives irrespective of the market environment. The asset allocation decision accounts for 80-90% of investment performance. Only a dynamic asset allocation strategy allocates enough resources to the key decisions that drive performance. We use the investment clock and our holistic world view to determine which asset classes to overweight and which risks to avoid. Usually only a few big macro or political themes determine the direction of asset classes. To identify these investment we believe in combining the quantitative and the qualitative. Investing is an art as well as a science.
Active funds tend to under-perform in the long-term, are expensive and monitoring active managers tends to be a distraction from the key asset allocation decisions. We were one of the first in the market to focus on passive index funds, to reduce costs and allow for more focus on the asset allocation.
We can offer our asset as a managed account with delegated trading authority, or as an external advisor to an investment committee.
institutional ESG overlays.
Many investors struggle to implement their ESG-policy when investing in ETFs and other index funds as you gain exposure to all the companies in an index, including the ones you may want to exclude.
In 2014 we started offering ESG-neutralisation overlays to institutional investors to overcome this problem. Our approach can be tailored to meet any exclusion policy.
Institutional INVESTOR education.
In the early 1990s, we started organising quarterly asset allocation groups for directors and board members of pension funds and insurers. These sessions have been held ever since on a rotational basis at the offices of leading Dutch pension funds.
The sessions main aim is for our clients to gain greater countervailing power towards their fiduciary and asset managers regarding asset allocation decisions. Besides being a way for clients to gain a better understanding of global developments, they are also used as a way to discuss and compare broader pension fund developments with peers.
We present and evaluate the different prevailing economic and market views, after which the investment implications are discussed and the participants take asset allocation decisions in a fictive model portfolio.
Through the years we have built an extensive investment process in which we monitor global market and economic developments in a clear and consistent way across countries and asset classes. This process forms the basis of the educational sessions.