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The process

The investment process for the Generation portfolios is robust and consists of many layers.

Strategic asset allocation

The managers devote significant resources to making long-term, strategic decisions about what exact quantities of the assets available should be held within the portfolios. Their process involves the use of proprietary investment models and a wide array of analytical tools. They draw on their own experience, as well in-depth analysis of economies and markets from internal and external resources, to establish trends and locate where the best opportunities might lie – and when to exploit them.

Fund manager research

The portfolio managers then single out those people running funds that appear best-placed to take advantage of market and macroeconomic trends. This process takes into account the expected return, volatility and level of correlation of the assets. It also involves scouring the performance, process and philosophy of the underlying managers, and looking at their organisations and resources as essential components of their capacity to outperform.

Yield assets

Among the mix of securities targeted by the portfolios, there is a focus on natural yield assets. The core of directly invested equities has a bias towards diversified sources of income and solid enterprises with attractive yields. There is also a broader emphasis on the execution of investments, as well as the leveraging of the expertise of OMGI’s highly regarded UK and European stock-pickers.

Vigilance on downside risks

On a shorter-term basis, the allocation of assets by the portfolio managers involves a persistent focus on avoiding the risk of losses and watching out for near-term catalysts. This is aimed at managing drawdowns and ‘journey’ risk to ensure that risk is managed at every stage of the investment process.

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