Our Philosophy

We aim to achieve long-term superior risk-adjusted returns through a multi-asset approach.

Asset allocation is the primary driver of returns. To determine the optimum asset allocation, BAM utilises a combination of third-party research, technical analysis and our proprietary macro-economic scorecard. By analysing a variety of indicators across all of the major economic areas globally, BAM is able to determine our preferred allocation by both asset class and region.

Portfolio Construction

Risk-Motivated

Portfolio construction is primarily risk-motivated and incorporates quantitative analysis and qualitative discussion.

Position Sizing

Position sizing is determined primarily by price volatility and correlation with other assets in the portfolio.

Back Testing

To ascertain the implications of investment, back testing and scenario modelling takes place. From which optimal position sizing is determined to achieve the best risk-adjusted returns.

Considerations

Additional risk considerations reviewed are bespoke to the investment objective. However, standing considerations include liquidity, volatility, political and regulatory risk as well as key person risk.

Climate change is the macro event of our time, and BAM believes it’s important to take into account the usual financial metrics when assessing investments and the non-financial externalities that impact risks and returns, thereby completing an element of ‘non-financial’ due diligence on all our holdings.

As professional investors, we interrogate funds to see what they are really doing
We don’t just consider environmental factors; we also consider governance and social factors
We place high value on qualitative research and due diligence
Our investments mainly utilise fund-of-funds using active managers, so we are assessing the managers on the quality of their due diligence on companies and adherence to their mandate. We expect to see their own work not just a reliance on “data”

We have a custom-built quant screen which flags any holding of interest to ask the managers about
We ask managers if anything has been sold on ESG grounds
We seek to understand managers’ engagement
We are part of the Beckett investment management group a B Corp firm which means that is has been certified by B Lab to meet a high standard of social and environmental performance, transparency and accountability. Although this is not directly related to the investment policy of the Funds, it demonstrates the commitment to apply a high ethical standard to our own operations as well as investment process of the Funds

Ethical investment choices are open to interpretation and will change as society evolves