We invest for purpose
Markets are constantly moving – and when conditions change investors must rethink their asset allocation.
Our flexible and dynamic approach draws on a global opportunity set to meet the multiple, often competing objectives of our clients. The goal is to tie all investment decisions to the ultimate objective of the portfolio.
Time has shown that asset allocation decisions are the dominant driver of overall portfolio returns and multi-asset investing provides risk and return benefits that are not typically achievable by investing in a single asset class.
We believe that holding a large number of asset categories doesn’t provide real diversification in today’s markets. To solve this challenge we have developed the First Sentier Real Return Fund, an objective-based approach to investing that combines the benefits of long-term asset allocation with dynamic short-term tilts to enhance returns and abate risks.
The fund aims to protect against inflation and provide growth by achieving a positive return of 4.5% in excess of Australian CPI (trimmed mean) over a rolling five year periods.
Unlike traditional multi-asset portfolios, there is no requirement to allocate to any particular investment type. We only invest in opportunities that offer the best risk-reward for investors, blending a combination of assets together across the full spectrum of equities, bonds, currencies and commodities that have the highest likelihood of delivering on the performance target while also considering sequencing risks.
By dynamically shifting exposures, we aim to take advantage of short-term investment opportunities as they arise. History has shown that being dynamic, making well-timed changes to the investment mix, can have significant positive influence on long-term performance.
Where does an objective-based fund fit within a broader portfolio?
Investing in an objective-based multi-asset strategy with flexible investment ranges free your manager to deliver more consistent returns with less risk, but how can a fund that moves in - and out - of asset classes fit within your broader asset allocation?
Here are five ways an objectives-based fund can be used in your portfolio:
An objective-based strategy can be added to the equities segment of your portfolio with the aim of delivering 'equity-like' returns with lower volatility.
An objective-based strategy could fall into the 'growth alternatives', 'defensive alternatives', or 'absolute return' categories, depending on the fund.
Core or whole portfolio solution
Use your objective-based strategy as a one-stop-shop for delivering on an overall portfolio objective - including outsourcing of asset allocation and governance.
Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.
As global multi-asset investors, we partner with our clients to provide solutions that maximise the probability that they will achieve their investment objectives. We assess our client needs based on three key criteria: risk tolerance, investment horizon and return ambition level. We utilise third party monitoring services for our direct holdings.
Meet the team
Epco van der Lende
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