Portfolio Construction and Monitoring

Within an investment strategy, when combining managers, the primary objective is to ensure that the chosen funds have complementary, not divergent characteristics, so that the combined portfolio does not result in simply replicating the index. This ensures that the stock-picking skills of the chosen managers still influence the fund at a total portfolio level.

The second criterion is to ensure that the combined portfolio has sufficient exposure to those styles that have consistently performed in various markets and that these styles exhibit low correlations.