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.
Our Process
BAM’s investment process is a continual cycle, whereby market views and analysis of economic data informs discussions amongst the team in order to determine the asset allocation of portfolios. The team are then able to choose from a wide variety of potential investments to populate their views. This involves both quantitative analysis as well as qualitative elements where BAM will meet with management teams to complete the due diligence process. Finally, the team consider how chosen investments will interact with one another to construct a portfolio.
Portfolio Construction
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
