Expand your investment universe to capture more opportunity with a global venture capital /private equity asset class.
Diversifying our assets from a geographical perspective - meaning our investment portfolio is spread across many different regions in the world in order to reduce risk and improve returns - is one of the best ways to generate peace of mind for our investors.
International equities provide exposure to markets with different economic, political and demographic profiles, not to mention a much larger universe of investable ideas, allowing investors the opportunity to invest in companies operating in countries with faster growth than the domestic economy. Diversification can mitigate many region-specific risks such as geopolitical events, economic cycles and monetary policies. A global portfolio also helps investors avoid over-exposure to local currency.
We view risk primarily as the prospect of losing our clients’ capital, rather than any short-term volatility or tracking error. Our target investments selection process is core to the management of risk – says Paul Barratt, strategic advisor to Anderton SICAV plc.
In particular:
- As a result of our bottom-up investment process, the key portfolio risks are the specific risks associated with each individual company in the portfolio. We view company or sector-specific risk as a function of our knowledge of the business and seek to manage this by means of research, peer review and ongoing monitoring.
- Appropriately calibrating the weight of each position within a portfolio based on the merits of each investment case is another important means of risk management in our process. We avoid excessive concentration in a portfolio and the diversification guidelines of our funds and mandates help to manage portfolio risk without unduly restricting the investment process.
