Risk management

Our proprietary risk management system helps portfolio managers to implement the investment strategy more effectively by quantifying the sources of absolute and relative risk in the portfolio. We seek to ensure that competitive performance is not the result of increased market risk relative to the portfolios’ benchmarks. Further, the risk system enables us to avoid uncompensated risks within the portfolio.

For our Core/Value equity portfolios, we have developed long- and short-term models covering more than 40,000 securities across 50 countries. Model assumptions and design can have an important impact on risk analysis and, therefore, on the resulting investment decision. Instead of relying on the assumptions of 'off-the-shelf' risk model providers, we have developed proprietary models which allow us to fully understand and control the design of our models and the assumptions upon which our investment decisions are based.