Alternative Investment Strategies

• Active management of diversified multi-asset portfolios, multi-manager funds and funds of hedge funds
• Bottom-up and proprietary research are the cornerstone of our investment process
• No investment in any asset is made without first interviewing management
• Continual improvement to risk management controls, as superior methodologies emerge
• Team-based approach with managers based in London, Edinburgh, Paris and Philadelphia, with access to all of the group’s skill sets worldwide

Our new fund of hedge funds and multi-manager capabilities enhance and complement Aberdeen’s traditional skills in multi-asset investing. Our aim is to provide client portfolios and funds that diversify and control risk while optimising returns, whether using in-house capabilities or those of third party managers. A range of passive fund solutions is also available, according to client need.

Alternatives Investment Process

Alternatives Investment Breakdown - Pro Forma

Active management

Our multi-asset team builds portfolios by investing in securities that have been researched and selected by our specialist asset class teams in-house, while our multi-manager and fund of hedge fund teams research and invest in highly-skilled third party manager funds.

A focus on long-term investing

In multi-manager funds, we aim to add value by identifying and building strong relationships with those managers which we believe will excel at providing riskadjusted performance. This approach mirrors our mainstream equity investment process, which is based on regular company visits with management. In multi-asset portfolios and the ‘balanced’ element of multi-manager products, we also employ top-down processes to aid superior portfolio construction and reduce risk.

Risk management

Our risk management controls are both specific to asset classes and characterised by our institutional clients’ own risk appetites, their agreed risk budgets and any other mandate constraints. While the strength of our investment decision-making process is predominantly qualitative, in our fund of hedge funds and multi-manager businesses we also draw on a number of quantitative inputs to help guide our investment decision making.

Proprietary research

First-hand analysis is a central tenet to Aberdeen as an investment manager. Despite the differences of our alternative asset capabilities, our stock and manager selection processes share the key values of our mainstream investment processes, namely due diligence, repeated investment meetings to verify our decisions and a disciplined attention to risk control.