Annual Report 2017

Investment Strategies

BTIM Multi Asset Investments

BTIM’s Multi Asset Investments team delivers whole-of-portfolio strategies and solutions, bringing together the multi asset investment capabilities from across the Group, combined with strategies provided by our close external partners.

The team’s investment philosophy is to provide clients with truly diversified portfolio solutions with optimal asset allocation, enhanced returns and reduced risk.

In constructing a diversified portfolio, we combine assets that maximise the probability of meeting client investment objectives, applying our investment insights to reduce portfolio volatility and improve the consistency of investment outcomes.

We strongly believe in the importance of diversification in all aspects of the modern diversified fund, across time horizons, asset classes and factors, and in enhancing returns through harnessing active management.

In addition to delivering best-in-class investment strategies from across the BTIM Group, our key value add to clients is continual research to improve the risk-adjusted returns of our strategies.

The BTIM Multi Asset team is highly experienced and well-resourced to deliver a range of investment solutions to suit different market segments.

The strength of the team lies within our disciplined approach to asset allocation, our ability to gain insights from our experienced investors and our strategic partners across all asset classes, both locally and globally. This has led to superior risk-adjusted returns for our clients.

The active performance of our funds was strong during the past year, with solid results over three and five year periods. This highlights the strength and consistency of our process, with all of our key drivers contributing to active returns.

Importantly, we delivered these returns with modest downside risk, providing a much needed buffer when the markets were experiencing negative returns.

The contribution from active management to total return was significant and continues to reflect our view that, as we head into a world of lower returns from traditional assets classes, the percentage that active management can contribute to the total pie is getting larger.

The flows to our new Wholesale Plus series continued to gain momentum with net inflows of over $165 million during the year. We hope to continue this strong momentum into 2018 and beyond.

The team expanded with the addition of two very experienced multi asset investment professionals.

Michael Blayney was appointed as Head of Multi Asset Investments in August 2017, bringing over 21 years’ industry experience. The team is benefiting from his extensive experience in asset allocation and, in particular, managing real return strategies.

In February 2017, Alan Polley joined the team. With over 16 years’ experience, his skills are being utilised in portfolio construction and in enhancing our alternatives strategies to further improve their risk-adjusted returns.

Heading into 2018, the team will be focussed on delivering enhancements to existing alternatives strategies and launching new investment solutions.

We believe that these strategies will become essential for investors looking to diversify their return sources, whilst still seeking high returns.

We continue to have a strong belief that market returns will be lower over the next ten years than they have been in the previous ten years.

In this environment, we believe it is important to focus on increasing the active return drivers within the strategies in traditional markets via active management, as well as from non-traditional markets via alternative risk premia and other enhancements.