Fund of Funds

The management of our fund of funds is base on our expertise in the following two areas:

1. Security selection (fund selection in this case)
2. Portfolio construction

Our fund selection process consists of the following steps:

1. Definition of a universe of eligible funds
Appropriate filters are applied in order to restrict the eligible fund universe.

2. Quantitative fund analysis
Each fund within the universe is evaluated and receives scores on any of the following criteria:

The scores on each of the criteria are weighted and aggregated in order to define a fund pre-selection list.

The selection of funds is based on the scorings of the quantitative and qualitative fund analysis.

Portfolio construction deals with:

1. the choice of markets and sectors
   
2. the choice of securities or funds within each market and sector
   
3. the assignment of allocation weights to markets, sectors and securities

In each of the above mentioned tasks of portfolio construction we apply quantitative processes that aim to:

• respect the relevant investment guidelines and restrictions at all times
  
• emphasise risk management
  
  • exploit the benefits of diversification
    
  • monitor and control risk budgets
    
• implement our tactical asset market views
  
  • exploit attractive valuations
    
  • exploit market opportunities
    
• control turn-over and transaction costs