PORTFOLIO TRANSPARENCY

Full transparency on the sub-advised portfolios is the second change resulting from these operational decisions. By aggregating the underlying holdings at the fund of funds level, the multi-manager has an almost real time view of his/her portfolio. This has a number of positive implications: the deviation from the benchmark is easier to grasp, the management of risk exposure is improved, portfolio simulations are more precise and finally, the quality of performance reports is enhanced.

This transparency is also fundamental for the fund’s tactical management: some aggregate portfolios can reveal over or underweight positions, which the multi-manager can either strengthen or offset by using sector, country or thematic funds.