Select with insight.
Allocate with discipline.
Selected funds. Diversified allocation.
Research and risk management for long-term value.
INVESTING THROUGH FUNDS
Investing through funds.
Managing assets as a portfolio.
Our fund-of-funds (FOF) approach focuses on selecting private funds and combining them to build multi-strategy investment portfolios.
The FOF invests in funds rather than directly in underlying stocks, commodity futures or other assets. Strategies such as A-share quantitative investing, CTA, bonds, hedging and enhanced indexing are implemented by the managers of the selected funds.
We monitor manager performance, risk controls and research systems, reviewing relationships across assets and strategies and the effect of individual strategy fluctuations on the portfolio.
THE FOF APPROACH
From fund selection to strategy allocation
The FOF approach connects fund selection with portfolio construction, providing exposure to different strategies through the selected funds.
FOF portfolio
Allocation objectives · Risk constraints
Selected private funds
Manager assessment · Fund selection
Strategy exposure
Bonds · Equities · CTA · Hedging
Allocation depends on investment objectives, risk constraints and research assessments. The strategies below illustrate research and allocation areas.
STRATEGY UNIVERSE
Ten strategies. Multiple perspectives.
Strategies have different sources of returns and risk characteristics. Expand each item to explore its rationale and assessment focus.
01Global macroCross-asset allocation
Uses macroeconomic, interest rate, currency and commodity indicators to assess market environments from the top down and explore cross-asset opportunities.
Assessment focusMacro judgments, asset relationships and positioning.
02BondsFixed income
Focuses on government and credit bonds, considering coupon income and price changes alongside credit quality and duration management.
Assessment focusCredit quality, interest rate changes and duration.
03Convertible bondsBond and equity characteristics
Evaluates the bond and equity characteristics of convertibles, using valuation and conversion premiums to assess downside exposure and return potential.
Assessment focusValuation, conversion premiums and underlying equity movements.
04ArbitragePricing differences
Looks for pricing differences in ETF, cash-futures or convertible bond markets and seeks spread opportunities through related transactions.
Assessment focusSpread changes, execution and strategy capacity.
05Fixed income plusMulti-asset portfolios
Combines a bond allocation with a proportion of equities, convertibles or other assets, assessing the sources of returns and overall portfolio risk.
Assessment focusEquity allocation, asset correlation and drawdowns.
06A-share quantitative long-onlyQuantitative equities
Uses quantitative models to analyze A-share market data and select investments for a long-only portfolio, seeking opportunities for excess returns.
Assessment focusEquity market fluctuations, model performance and style changes.
07Mixed strategy (equities + bonds)Dynamic allocation
Dynamically allocates between equities and bonds according to macroeconomic and market conditions, assessing the performance and risks of both asset classes.
Assessment focusEquity-bond mix, allocation changes and risk alignment.
08Commodity futures / CTAFutures strategies
Focuses on commodity futures, using trend, arbitrage and long-short approaches to explore opportunities across different price environments.
Assessment focusCommodity prices, trend changes and derivatives risk.
09Equity long-shortHedging strategies
Combines long equity positions with short hedges to manage market exposure, with attention to security selection and hedging effectiveness.
Assessment focusHedging arrangements, market exposure and strategy correlation.
10Enhanced indexingIndex exposure and active optimization
Starts from exposure to a target index and adds active optimization, seeking excess returns while managing tracking error.
Assessment focusIndex fluctuations, tracking error and sources of excess returns.
All strategies may face market fluctuations and other risks. Diversification does not eliminate risk. These descriptions explain allocation approaches; specific risks should be assessed in relation to the relevant funds.
RESEARCH & RISK MANAGEMENT
Continuous research and portfolio review
Fund selection, portfolio allocation and risk management form a continuous process.
Research & selection
Research macroeconomic conditions and fund strategies; evaluate manager research systems, historical performance and risk capabilities.
Portfolio construction
Review relationships between funds and strategies in relation to risk constraints and allocation objectives.
Monitoring & review
Monitor fund operations, manager capabilities and portfolio risk, including consistency of strategy implementation.
Adjustment & optimization
Review and adjust fund allocations in response to market conditions and ongoing assessments.
START A CONVERSATION
Discuss your allocation approach
Learn about the FOF approach, fund research and multi-strategy allocation.