European equity outlook: the roaring twenties24 January 2020
Why we need to talk about value versus growth (again)
During periods of market volatility, investors and their advisers focus not only on capital appreciation but also capital preservation for clients.
Our experience of over 30 years in managing private client portfolios enables us to focus on our clients' wealth creation and wealth preservation. Our aim is to make our clients' investment lives relatively simple whilst allowing them access to some of the most sophisticated and contemporary investment capabilities globally, through our in-house investment teams and externally through our chosen external specialist fund managers.
GAM has always believed that portfolio management organisations should be neither bankers nor brokers, but independent owner operated professional entities, such as GAM is today.
Why we need to talk about value versus growth (again)
Concern around the potential escalation of the CoronaVirus is dominating global headlines. GAM Investments’ Tim Love considers the impact this could have on emerging market equities.
When no industry is immune to disruption, can the tech sector exist within its own vacuum? GAM Investments’ Mark Hawtin considers the omnipresent nature of today’s technology and questions the effectiveness of current benchmark indices.
GAM has been managing investments for charities, foundations and philanthropic trusts since 1988. We specialise in managing discretionary multi-asset portfolios, designed to address the unique requirements of each individual client.
We will work with you to build a high-quality, dynamic investment portfolio, based on an active approach to asset allocation and access to some of the world's most talented fund managers.
We aim to deliver consistent, superior returns, clear communication and attentive client service. We don’t run a common investment fund; instead, we build bespoke, multi-asset portfolios using the traditional asset classes of equities, bonds and property. Our focus for charities is on transparency, liquidity and value for money.
We believe that the best way to achieve the optimum investment returns for our charities over time is to diversify investment portfolios across a range of different asset classes. We are convinced that it is not possible to pick consistently, and with absolute certainty, the winning asset class year on year; a diversified approach is crucial to producing consistent long-term returns.
There are two aspects to arriving at the most appropriate balance of investments (or ‘asset allocation’) for long-term charity funds. One is strategic, the other is tactical.
The correct strategic mix is rooted in the circumstances of the charity and will be reflected in the composite benchmark. This is the combination of assets most likely to product the optimal result for the charity in ‘normal’ market conditions over the long-term.
By contrast, the tactical mix will be the combination of asset classes that is most likely to make the most of prevailing market conditions in the shorter-term. Within the constraints granted by the trustees at the outset of the relationship, we will flex the asset allocation in your portfolio in accordance with our macroeconomic views and outlook for each asset class.
Optimal results hinge on access to – and investment in – the best securities in each area. We construct portfolios using active fund managers in each region or sector, those whom we have identified as the most talented stock pickers in their field.
Our dedicated Manager Research Team is vital to our ability to identify the most talented fund managers from around the world. The Team subjects every potential manager to an in-depth evaluation, examining their investment strategies and quantitative characteristics in order to provide a well-supported, documented investment thesis for manager selection and on-going monitoring.
With more than 30 years’ experience researching managers and approximately 40 staff, GAM has one of the largest, best equipped manager research capabilities available in Europe.
Where we are unable to identify the right manager for a given sector or geography, we will buy passive index funds, or ETFs, as a low-cost alternative.
Risk management is threaded through every stage of our investment process, and nowhere is this more important than for our charities.
Our dedicated Operational Due Diligence Team monitors and reviews every manager we seek to appoint, producing an in-depth report on each and every one, prior to its inclusion in a portfolio. The report is a rigorous analysis of fund documentation, operations and the strength of key service providers (such as administrators), with a focus on identifying potential sources of operational risk right across the food chain. Once invested, our Team continues to measure, monitor and assess the funds personnel and performance to ensure that they remain suitable.
Finally, our operations and back office infrastructure work alongside to ensure efficient administration of portfolios and their investments.
Our risk-rated model portfolio strategies cover a range of risk/return profiles, from capital reservation to full equity market participation.
For charities with £1m or less in investable asset, we offer a range of unitised fund strategies.