Multi-manager solutions

We seek to combine independent sources of alpha from Wellington Management’s broad array of investment approaches using proprietary risk research.

INVESTMENT PRINCIPLES

Our multi-manager solutions team has developed key principles that encapsulate the team members’ strongly held beliefs, including:

  • High active share is a useful measure of alpha potential, a critical element in structuring equity allocations, and a defense against closet indexing. This principle is based on the team’s belief that the potential to generate alpha increases as managers differentiate their portfolios from their benchmarks. Moreover, it helps guide the team’s efforts to ensure alpha potential remains high when constructing multi-manager portfolios for clients.
  • The impact of risk factors on returns has increased materially and, given structural changes to markets, is unlikely to decline. In addition, the team members believe risk factors are more nuanced and numerous than the classic “nine style box” would suggest. Therefore, they have created a detailed proprietary risk-factor framework that they employ in internal risk analysis and in the management of client portfolios.
  • Investment decisions should be guided by risk considerations. The team’s manager allocation process, factor research, and risk tools. As a result, they typically have a mandate to pursue alpha for clients but with a specific risk profile.
Kent Stahl

In recent years, the frequency of risk-factor outliers has increased dramatically, and today risk factors are generally on par with security selection in terms of their impact on portfolio performance.

Kent Stahl, CFA, Chief Investment Strategist

EXPLORE INSIGHTS​

The future of payments
We profile the innovations fuelling the next stage of disruption in the payments industry.
April 2021
The future of payments
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There’s more to inflation risk than meets the eye
Understanding and evaluating inflation risk in your portfolio is the first step to managing it effectively. Multi-Asset Strategists Nick Samouilhan and Adam Berger lay out a framework for investors to do just that.
April 2021
There’s more to inflation risk than meets the eye
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Nick Samouilhan
 PhD, CFA, FRM
US public debt: is there a downgrade in the making?
US Macro Strategist Juhi Dhawan looks at the surging US debt through the lens of the credit rating agencies and offers thoughts on what it will take to avert a downgrade.
April 2021
US public debt: is there a downgrade in the making?
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The digital transformation of financial services
We highlight the fintech innovations driving the digitisation and disruption of financial services.
April 2021
The digital transformation of financial services
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<em>Investment bytes – Asia tech</em><br><span>Faster computation with smaller, more powerful computer chips</span>
We explore the technology fuelling the next stage of computer chip innovation.
March 2021
Investment bytes – Asia tech
Faster computation with smaller, more powerful computer chips
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APAC Investment Forum 2021
Wellington specialists offer their views on the key themes transforming the investment opportunity set today.
March 2021
APAC Investment Forum 2021
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How we believe climate science can uncover investment opportunities
In this replay, we explore how our partnership combines Woodwell's leading-edge science and Wellington's investment expertise to understand how the physical effects of climate change are impacting particular sectors, regions and securities. We believe this leads to better-informed investment insights and differentiated opportunities.
March 2021
How we believe climate science can uncover investment opportunities
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Developing net-zero commitments and tools
More and more companies, asset owners and investment managers are pledging to achieve net zero in the decades ahead. Director of Sustainable Investing Wendy Cromwell and Climate Transition Risk Analyst Julie Delongchamp recently led an interactive discussion about the net-zero commitment, considerations for asset owners and tools to align portfolios with the energy transition.
March 2021
Developing net-zero commitments and tools
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