The fund is managed through a top-down process based on an assessment of global economic conditions. Based on this process, the Portfolio Managers will determine allocations between a variety of risk assets (Equities, Real Estate, Credit, etc.) expressed through the purchase of third party investment vehicles at a discount, and direct purchases of real return and defensive cash-like assets (Fixed Income, Gold etc).
The approach utilises a defensive approach, allocating first to cash & T-bills, then moving out the risk curve upon further conviction. We like the fund for the ability to provide a defensive return stream whilst specifically avoiding high correlations with individual risk assets, allowing for flexible portfolio construction in respect to the risk environment.