1.We do one thing and one thing only – Global Multi Asset Management. Our investment philosophy is unashamedly simple, “diversification through unconstrained global asset allocation within an absolute mindset”.
We adopt a Team Approach with a multi manager bottom up process.
2.Strategic Asset Allocation or big picture long term super cycles are very important to us.
3.Risk models for volatility must include data from the past 100 years to include as many possible economic cycles and avoid black swan events.
4.We are active tactical asset allocation managers who attempt to focus on absolute not relative returns through different liquidity cycles.
5.Diversification is key to our portfolio construction.
6.The following is very important to us at when looking at fund / security selection
• Tracking error and Counter party risk on all Exchange Traded Fund (or notes).
• Rolling information ratios on all active alpha managers ie added return for risk taken on a rolling three year basis to establish trends.
• Investment Trusts / Closed Ended Funds for discounts to NAV and special situations.
• Liquidity and operational due diligence on all alternative strategy funds and managers
• Structured Products for idea implementation.
• Qualitative meetings and reviews for all underlying managers. Quantitative and Qualitative research is vital to ensure that the bottom up part of the process is executed correctly.
7. Risk Management and dealing procedures are key to our philosophy.
8. Full discussion about investment strategy within each asset class is available in the in depth analysis of each fund.
In summary, we are looking for funds and listed securities that outperform on the upside when we invest based on an asset allocation call and not necessarily in down markets or through all cycles which makes us very different to a traditional multi manager business.
MitonOptimal Guernsey Limited was founded in 2002 as Optimal Fund Management Limited by the current managing director and fund manager. Regulated by the Guernsey Financial Services Commission (GFSC) to act as manager and investment adviser to funds and discretionary portfolios, the company has built up US$245 mil of fund under management(as at 31 March 2011) in four main portfolios. The founder fund managers of each portfolio remain in place and firmly committed to the success of MitonOptimal in the many years ahead.
The company was acquired by Midas Capital PLC in 2007, along with other group companies, but was subject to a successful management buy back completed in the first quarter of 2010. This has involved two thorough rounds of due diligence. The directors of the company have remained consistent since inception and we have continued to achieve annual growth of funds under management.
MitonOptimal does not launch new funds that are simply flavour of the month. We have our core Multi Asset Management portfolios that best negotiate the difficult, and at times very volatile, world of global equities, bonds, cash, currencies, commodities, hedge funds, private equity and commercial property and that is how it has remained since inception. We deliver a broad range of funds diversified across traditional and alternative asset class, geography and jurisdiction, with an emphasis on active investment management and client service.
Who we are
We have a highly experienced team of investment professionals, non executive directors and support crew that specialise in the following funds
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Offshore Special Situations
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International Diversified Income
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International Beta Equity
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We have battened down the hatches from a tactical asset allocation perspective over the past few weeks. In a crisis, we have learnt that if you need to panic, it is best to have panicked first! Those asset allocators who have issued statements this week that they are sitting out this volatility are generally overweight global equity and do not have much choice. But are we nearing the end of the secular bear market in developed world equities?
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WEEKLYCOMMENT
THETEAM
Investment Process