The ACPI Balanced UCITS Fund is a global asset allocation vehicle, oscillating between equities and bonds over a classic capital market cycle (~5yrs) via collective investment schemes.
Best of breed
There is an abundant array of talent out there, we aim to unearth and encapsulate that talent into an asset class and geographically diversified portfolio.
A global reach
Experience and travel have shown that it is often the smaller, less publicly known, dedicated investment boutiques which consistently outperform their respective benchmarks over time. It is these investment opportunities that we seek to identify while avoiding the benchmark-hugging, mediocre, asset gathering offerings present on many wealth managers platforms.
Having managed multi-manager solutions for over a decade and through two full market cycles, ACPI has been internationally recognised by a number of the fund industry’s leading rating agencies.
Questioning the cycle
By bringing a selection of the very finest active fund managers across all asset classes into a blended fund of fund portfolio, the ACPI Balanced UCITS Fund aims to navigate the ever changing market cycle.
There is an abundant array of investment management talent out there; we aim to unearth and encapsulate that talent into a portfolio that is diversified across both asset classes geographies.
As investors we are primarily allocators of capital, rather than fund selectors. We therefore aim to combine two key aspects of multi-manager investing:
- Active manager selection;
- A robust internal asset allocation framework
We favour a concentrated portfolio of 10-15 managers with a solid and often repeatable investment process over the market cycle.
Adequate diversification is achieved at the aggregate portfolio level through the diversified nature of the Balanced Fund’s underlying managers which have exposure to the broad asset class spectrum.
We insist upon high levels of transparency and liquidity from our managers, as well as continuous dialogue.
Patience: We seek to deliver returns over the long-term, avoiding the human tendency for instant gratification
Independence: We make up our own mind and do not allow others to make it up for us
Caution: We believe the key to making money is not losing it; we focus more on what can go wrong within manager selection than what might be right
A back-to-basics approach: We believe the most important requirement for investing is a healthy dose of common sense
Our approach favours forming a relatively concentrated portfolio of 10-15 specialist investment boutiques with a solid and often repeatable investment process over the market cycle. Generally, such firms tend to operate with a smaller asset base where performance is the primary objective.
CHALLENGING CONSENSUAL THINKING
We believe that large asset bases are a structural impediment to longer-term consistent outperformance. We also believe that managers within larger organisations are often restricted by tracking error limitations and often refrain from backing ‘high conviction’ calls as a result of ‘career risk’.
PROPRIETARY & EVOLUTIONARY SCREENING PROCESSES
We carry out a rigorous initial manager selection process combining both qualitative and quantitative assessments of both the manager’s investment pedigree and strategy guidelines. The on-going monitoring of invested managers is a continuous process and utilises our proprietary manager portfolio valuation screening methodology throughout . Our process is evolutionary, ensuring that we remain at the forefront of product innovation given the ever changing dynamics of the investment world.
QUANTIFYING RETURNS OVER THE LONG TERM
Equity managers implementing a high return on invested capital investment philosophy form the core of the equity composition over the cycle. We believe that companies with above market ‘quality’ ratios (High ROIC, ROE, sustainable operating margins and attractive dividend yields) compound over the long-term and provide investors with downside protection due to their inherent ‘franchise’ qualities and resilient business models. However certain styles are likely to provide compelling risk-reward opportunities at certain points in the cycle, we aim to capitalise from such opportunities when they arise.