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 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. By exiting markets early and avoiding large drawdowns in bear markets we have been able to consistently outperform over the investment cycle.
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 highly disciplined investment process in which we monitor global developments regularly and consistently. Furthermore, the quantitative comes from the fact that only invest in strategies, for which we judge the upside potential to be much greater than the 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 multi-polar world we live in and different participants in investment markets change the assumptions those models are based on.
Dynamic asset allocation.
As asset allocation accounts for 80-90% of investment performance, only a dynamic asset allocation strategy allocates enough resources to the key decisions that drive performance.
Furthermore, it is a flexible strategy that can adjust to a changing economic and market environment and can benefit from the incongruence of political, economic and investment market cycles in the current globalised and multi-polar world.
Active funds tend to underperform 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 key asset allocation decisions.