Nowadays news and all imaginable data are readily available but this does not make it any easier to invest successfully. Most of what you read is noise. 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.
The quantitative in Quantrust comes from our disciplined investment process in which we monitor global developments regularly and consistently. We then only invest in strategies, for which we see a much greater upside potential than downside risk.
The qualitative comes from our people: we never take decisions on the basis of quantitative models alone. In a rapidly changing world, we believe only people are able to take a broader perspective on events and deduce the big picture from all the quantitative data and competing economic and investment theories. We find that most quantitative investment models are able to work well in a certain market environment but fail when the assumptions those models are based on change.
Dynamic asset allocation.
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. That is why we were one of the first managers to specialise in dynamic asset allocation which we have offered to institutions since 2000.
It is a flexible strategy that can adjust to a changing economic and market environment and can benefit from the in congruence of political, economic and investment market cycles in the current globalised and multi-polar world.
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 prefer to invest through index funds which are cheap and give us more time to focus on the asset allocation.