Our approach to International Multi-Manager Investing

Our approach to International Multi-Manager Investing

By Andrew Yeadon, 22 Sep 2015

The Nedgroup Investments MultiFund range is comprised of three risk-graded portfolios which are invested globally across a diversified mix of asset classes and leading specialist managers. The range is designed for those seeking a professionally managed one-stop portfolio solution, and caters for both the adventurous investors, as well as those that are more cautious. The funds are domiciled in Dublin and managed under the respected UCITS IV framework, which means that they comply with the very highest regulatory standards within the industry. Share classes are available in both sterling and US dollars, and each fund is valued and open for investor cash flows on a daily basis.

Investment objectives of the Nedgroup Investments MultiFunds

The Nedgroup Investments Growth MultiFund aims to provide high levels of growth with moderate to high levels of risk and volatility over the medium to longer term. It is anticipated that the strategy will achieve a return of 3-month LIBID +3% to +5% over a rolling 5 to 7 year period.

The Nedgroup Investments Balanced MultiFund aims to provide moderate levels of growth with moderate levels of risk and volatility over the medium to longer term. It is anticipated that the strategy will achieve a return of 3-month LIBID +1% to +3% over a rolling 3 to 5 year period.

The Nedgroup Investments Income MultiFund aims to provide a lower risk, lower volatility investment option over the medium to longer term. It is anticipated that the strategy will achieve a return in excess of 3-month LIBID over a rolling 3 to 5 year period.

Our investment resources and process

We have a dedicated team of eight investment professionals based in London and Cape Town who work together to devise and manage the strategies that drive the performance of the Nedgroup Investments MultiFunds. Our investment process comprises of various disciplines, including strategic and tactical asset allocation, manager research, portfolio construction, risk management and performance monitoring, as summarised in the process diagram below.

Process image

Process image two

Process table

Asset allocation of the Nedgroup Investments MultiFunds

As active managers, we vary each fund’s asset allocation within its strategic framework in order to reflect our expectations for potential return and risks. Through this tactical approach, we seek to add value by emphasising asset classes that we expect to do well, whilst minimising those where the outlook is less promising.

We set out an illustration (above) of each fund's strategic (or normal) asset allocation, followed by a table showing the tactical range limits and long term volatility targets.

 

The 10 key attributes of our international multimanager investment approach

1. Global

Investing globally allows us to access a larger opportunity set and to better diversify client portfolios.

2. Valuation driven

We believe investment decisions should be primarily motivated by a disciplined assessment of absolute and relative valuations.

3. Long term focus

We invest with patience and a focus on the likely long term outcome.

4. Diversified multi-asset approach

We invest across a diverse range of asset classes with the aim of delivering portfolio solutions that offer attractive risk-return outcomes.

5. Clear investment process

We have a disciplined and structured investment process which seeks to avoid making decisions based on emotion rather than analysis.

6. Pragmatic manager selection

We employ a pragmatic approach to manager selection, seeking out the best in areas we believe active managers can add value, and using low cost index trackers where we believe passive investing is a better option.

7. Risk monitoring

Our funds are all risk graded and carefully managed within defined volatility parameters.

8. Transparency

We strive to be completely transparent and open in our communications.

9. Stewardship

We aim to serve our clients through the adoption of best market practice in all areas of investing, process and governance. We always put client’s interests first.

10. An experienced team

We have a well-resourced team of eight full time investment professionals dedicated to the Nedgroup Investments Multi-Manager product range.

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