For more than 25 years, we have managed our clients’ capital to realise their long-term investment goals. We do this by managing both risk and return expectations.
Combining alternatives with traditional asset classes, we use a highly-disciplined, quantitative approach to find solutions that meet our clients risk, return and liquidity profiles.
At QIC, we recognise predictability of outcomes are what clients value most. Multi-asset investments provide access to superior risk-adjusted returns and the flexibility to respond to changing markets.
Managing client outcomes is our only objective. Long-term thinking is what matters. We believe investment decisions cannot be made in isolation. Therefore, we take a whole-of-portfolio view, considering the assets we manage and even those that we don’t.
Our investment beliefs have been developed over time from deep research and extensive experience. These beliefs guide our decision making, our priorities and our processes.
Our valuation models focus on the long-term investment opportunities. This allows us to access a broader range of risk factors, including illiquidity.
We look through asset classes to underlying risk factors. In our view, diversifying across a broad range of factors, as opposed to asset class labels, is the key to generating investment outcomes for clients.
1As at June 2018.
Our suite of investment capabilities includes:
▼ Economic analysis and forecasting
Changes in the economic environment, and particularly fluctuations in economic growth, inflation and interest rates, will impact portfolio performance. The Economics and Research team provides analysis and forecasts of the global macroeconomic environment. These forecasts are used to frame GMA’s risk and return assumptions. Our Economics and Research team uses the National Institute’s Global Econometric Model to analyse and forecast economic developments across major economies in a consistent, integrated manner.
▼ Dynamic Asset Allocation (DAA)
DAA manages the portfolio’s shorter term exposure to liquid markets and currencies in a systematic, valuation-based framework. The objective of DAA is to generate additional returns over and above the SAA returns. Valuation signals based on the long term economic forecasts and MAC model risk assumptions are used to increase and decrease asset class and currency positioning within a prescribed risk budget.
▼ Risk factors
Portfolios can be analysed in terms of risk factors as well as traditional asset class labels. Risk factors can be thought of as the characteristics of the securities making up an asset class which have a measurable risk and return. Examples of risk factors are value, carry, quality and illiquidity. We believe that different factors offer different risk-return trade offs and these are quantified in the MAC model. All of our multi asset class portfolios are analysed in terms of factor exposures. We also offer stand-alone exposures to individual factors, equity asset class factors and portfolios comprising factors across multiple asset classes.
▼ Asset Liability Management
We use ALM software, known as ORTEC, to model the assets and liabilities of pension schemes and insurers in a consistent manner. We integrate the MAC model asset returns into ORTEC to model the potential impact of market variables on the solvency of pension schemes.
▼ Option Solutions
At QIC, our options-based asset allocation services can be used to implement portfolio rebalancing, DAA and for tail hedging purposes. Options can also be used as a potential source of returns.
Clients can access our investment capabilities through segregated mandates as well as through pooled products. These include: