Multi-Asset Solutions

The Multi-Asset Solutions (MAS) team designs and implements tailored, risk-managed multi-asset portfolios, as well as multi-sector portfolios. Our investment process is designed to consistently add value and deliver on established return objectives.

We assess our clients’ needs based on the following three key criteria; risk tolerance, investment horizon and return ambition level. ESG research is currently conducted by the Multi-Asset Solutions team, with a focus on developing customised solutions for clients.

Investment Philosophy and Approach

Our Multi-Asset Solutions team investment philosophy is based on the following beliefs:

  • In the long run, fundamental valuations will assert themselves and be the most important driver of returns.
  • In the short term, markets are not completely and globally efficient due to a variety of clientele effects (liquidity requirements, regulatory constraints, mandatory hedging and even simple home biases), providing an opportunity to protect and enhance returns.
  • Investment decisions should be taken with respect to the overall portfolio's objective.

Therefore, we believe a global multi-asset investment process can deliver on objectives and consistently add value by:

  • Designing the asset allocation to reflect economic climate expectations; and responsively adjusting to market developments.
  • Systematically exploiting market inefficiencies by focusing on key fundamental drivers of returns (Value, Momentum, Carry, Fundamental, and Market Structure).
  • Blending disciplined quantitative underpinnings with qualitative experience and expertise across the broadest possible opportunity set of markets and financial instruments.

We base these view on research (both academic- and market-based) and our experience delivering on client objectives. For our research related to these topics, please refer to our website.

"We consistently add value by blending disciplined quantitative underpinnings with qualitative experience and expertise across the broadest possible opportunity set of markets and financial instruments."

Team Profile

The Multi-Asset Solutions team provides a range of services to institutional clients around the world in the fields of portfolio management, asset allocation, asset/liability management, portfolio construction and risk management. We are a highly experienced and cohesive team of nine investment professionals located in Singapore, Sydney and London. 

Our dedicated team of portfolio managers and analysts are responsible for research, portfolio construction and implementation. We work collaboratively with our clients to develop robust and consistent investment solutions, which maximise the likelihood that they will achieve their stated investment objectives. 

9
14
yrs
5
yrs

Stewardship And ESG Integration

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. 

As part of our stewardship responsibilities, we exclude specific companies involved in munitions and armaments across all of our portfolios. We can also apply ESG screens to exclude companies or industries for certain clients. In addition, we believe that voting on company resolutions is an important responsibility of any equity holder and we vote on company resolutions using the advice and services of CGI Glass Lewis. 

Assessment and monitoring

ESG research is conducted by the Multi-Asset Solutions team, with a focus on developing customised solutions for clients. All research is designed to be implemented systematically using data provided by GMI Ratings and Sustainalytics. Due to the top-down investment process, we do not typically directly meet with company management. 

Integration

We work with clients to integrate ESG considerations into their portfolios as required to meet their investment objectives. In addition to our standard exclusion of munitions and armaments companies, we can exclude specific ‘red flag’ companies or industries, such as those involved in tobacco, gambling and alcohol. In addition we vote on all company resolutions where we are able to do so.

"We work with clients to integrate ESG considerations into their portfolios as required to meet their investment objectives."

Investment Information And Performance

Performance 

% of the team’s portfolios outperforming their relevant benchmark over three years * 100%

Absolute return (per annum) since inception
First State Diversified Growth Fund (Inception date 23/6/2015) **

6.48%

Performance and investment characteristics are as at 31/12/2016
Performance is quoted pre-fees and in $A terms. Investors in other currencies will be subject to exchange rate fluctuations which will affect investment returns.
Past performance is not indicative of future performance.

Source: First State Investments
*Includes all funds and segregated accounts managed by any entity within Colonial First State Global Asset Management. Not all funds and accounts are registered or available in all jurisdictions. This may not be representative of your jurisdiction.
**This Fund has been selected as representative of the strategy but this may differ across the other funds and accounts within the same strategy.
Please follow this link for information on how our RI and Stewardship Measures are calculated. 

Climate Change

Due to the top-down nature of our investment process, we do not directly consider climate change as part of our investment decision making process.