Investments

Portfolio strategy: The portfolio strategy component of investment management is comprised of strategic asset allocation and investment level steering.

Strategic asset allocation is designed to provide a framework for long-term portfolio diversification. We define this as an investment strategy with a risk/return profile tailored to clients' needs while optimizing cash flows stemming from investments/commitments.

Investment level steering is defined as the development of an investment plan to achieve and maintain the desired private markets exposure for the client based on our understanding of cash flow patterns of different private markets investments.

Portfolio implementation/relative value: Once the portfolio strategy has been established, our “relative value” investment strategy is designed to identify the most attractive investment opportunities at a given point in time, based on an understanding of key return drivers and the market environment.

While the relative value approach offers the potential for attractive risk-adjusted returns, it requires a broad array of skills and can only be successfully implemented with a large, global integrated team, a broad industry network and years of experience. We summarize our relative value approach and current outlook on the various private markets asset classes on a semi-annual basis in our Private Markets Navigator. Portfolio servicing: our private markets investment management involves the ongoing monitoring and valuation of investments as well as administration and accounting. These processes are carried out by various dedicated in-house teams.

Back