Asset classes

Risk Management

We use Advanced Portfolio Technologies (APT) risk tools to examine common factor and industry/sector exposures, stock specific risk, and predicted tracking error. In addition, the team uses FactSet attribution analysis to evaluate the efficacy of our security selection - the primary source of the fund's return premium.

The team looks at both short-term and long-term results of performance attribution to examine the sources of return and risk and to fully understand the fund's performance.

Our strength in portfolio management rests with individual company analysis and research-driven stock selection; therefore we emphasise stock-specific risk as the largest component of predicted tracking error in our portfolios, rather than industry weightings or beta control.