Managed Portfolio Service

The portfolios seek to generate superior risk-adjusted returns with a robust and disciplined investment process. The focus is on investing in actively managed funds with a track record of strong risk-adjusted returns and holding them for the long term.

The portfolios typically invest in 15-25 funds and are well diversified both by region and industry.

The portfolios typically would not invest in open-ended direct property funds, exchange traded funds or investment trusts.

With a global fund universe of over 3,000 funds, the first step revolves around excluding funds with short performance track records. This is followed by historic performance analysis which aims to identify funds that have consistently outperformed peers whilst achieving top quartile risk-adjusted returns over long time horizons.

Analysing quantitative risk metrics provides the investment team with insights on the performance behaviour of funds during periods of material economic stress. This feeds into portfolio construction to ensure each portfolio is consistent with its stated risk profile. The quantitative risk analysis supports the qualitative assessment of funds, which primarily focusses on the diversification benefits associated with different geographies, investment styles and fund houses. Finally, when selecting a fund, Cantab aims to build personal relationships with managers, which usually involves meeting the investment team.

Using a proprietary monitoring framework, weekly research meetings and quarterly investment reviews are conducted to ensure that the underlying holdings in the portfolios continue to meet the investment case.

We intend to hold positions for the long term, and so portfolio turnover will be low. A typical investment size for a holding will range between 5% and 15% of the portfolio, and for risk management purposes we will not let a position grow beyond these levels. Managed portfolios are rebalanced monthly.

We do not recommend wholesale adoption of any single investing style, believing a blend of styles is key to generating superior long-term, risk-adjusted returns.

The portfolios seek to generate superior risk-adjusted returns with a robust and disciplined investment process. The focus is on investing in active ESG-mandated funds that clearly integrate Environmental, Social and Governance (ESG) factors and holding them for the long term.

The portfolios typically invest in 15-25 funds and are well diversified both by region and industry.

The portfolios will not invest in funds that do not have an active ESG mandate or those that do not clearly illustrate the integration of ESG principles into their investment decision making. Due diligence is conducted to ensure no ‘Greenwashing’ and to identify whether managers follow through on the ESG restrictions they have set.

While many asset owners remain focused purely on the generation of financial returns, the growth of ESG investing is undeniable and undeniably appropriate, in our opinion. Indeed, the world is warming up to the belief that we need to invest more responsibly, in terms of how we treat the environment, but also with respect to how corporations behave from a social and governance perspective.

It is important to recognise that, while the media may focus on one specific aspect of these ESG building blocks at any point in time, as investors we need to maintain a balanced approach to all the stakeholder issues a company might face. From an investment perspective, while the above considerations are embedded into our investment process, our overriding aim is to generate superior investment returns for our clients.

We do not recommend wholesale adoption of any single investing style, believing a blend of styles is key to generating superior long-term, risk-adjusted returns.

We intend to hold positions for the long term, and so portfolio turnover will be low. A typical investment size for a holding will range between 5% and 15% of the portfolio, and for risk management purposes we will not let a position grow beyond these levels. Managed portfolios are rebalanced monthly.