People & Process

Our Philosophy

We acknowledge that a large proportion of managers, who run actively-managed funds, struggle to achieve their investment objectives, net of fees, on a sustained basis. 

Our research approach is therefore framed around the key questions of a fund’s quality, its utility and its value for money, defined as: 

  • Quality – assessing a fund manager’s competence, abilities and resources in the context of a fund’s objectives.
  • Utility – assessing a fund’s risk and return characteristics and formulating our expectations for its behaviour in different market conditions.
  • Value for money – questioning whether a fund has the potential to add value, net of fees, over and above a specified and understandable reference point.  This value-add may be expressed simply in terms of its performance outcome compared to a relevant passively-managed vehicle; alternatively, the value-add may be determined by attractive risk-adjusted returns or a lower volatility outcome; it may also be a manager’s ability to run a mix of assets successfully or to provide access to a specialist investment opportunity.  Therefore a fund’s “value for money” is not only about its costs, but also about the outcome it offers to investors.

We believe that research should always be undertaken with a deep understanding of market context and an ability to assess what is possible and reasonable in different market conditions.  

We also believe that a research approach that is based upon quantitative and qualitative analysis can be highly effective in identifying those actively-managed funds that are rewarding to investors over time.

People & Process