Portfolio construction

Single strategy

Once the Research team has validated the fund or manager selection, the analyst builds a portfolio in the single asset class strategy he follows using a “barbell approach”*.

These portfolios constitute a 'building block', used both for single and multi-asset strategy portfolios.

Multi-asset class strategy

Disciplined portfolio construction and rigorous procedures allow efficient implementation and effective risk management.

The investment management team uses a proprietary asset allocation tool which allows them to take into consideration:

• The funds’ objectives and guidelines
• A systematic, homogeneous application of the tactical asset allocation decisions for all portfolios
• Ex-ante risk monitoring

Once the investment strategy is defined, multi-asset class portfolios are built by combining different blocks of single strategy portfolios, derivatives and ETFs, if needed, to monitor risk.

Active-passive strategy

Both active and passive investing have their strengths and weaknesses. FundQuest conducts ongoing in-depth research to identify the investment style categories in which passive investments may make more sense and those categories in which active management may outperform the indices.

Thus, our portfolio managers combine “active” and “passive” strategies in order to be positioned for more regular returns.

*Barbell: one of the portfolio construction methods adopted and developed by FundQuest which blends manager styles.