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.
Gregg Thomas

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.

Gregg Thomas, Director of Investment Strategy

EXPLORE INSIGHTS​

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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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
The future of payments
We profile the innovations fueling the next stage of disruption in the payments industry.
April 2021
The future of payments
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The digital transformation of financial services
We highlight the fintech innovations driving the digitization and disruption of financial services.
April 2021
The digital transformation of financial services
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Why Europe offers a robust hunting ground for small caps
Portfolio Manager Anna Lundén offers her local perspective on Europe, highlighting the inefficiencies created over time by the outperformance of small-cap companies vs large-cap companies.
April 2021
Why Europe offers a robust hunting ground for small caps
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EM small caps: Hidden gems in plain sight?
Our team makes the case for strategically investing in EM small caps and for employing an actively managed approach to this underutilized asset class.
March 2021
EM small caps: Hidden gems in plain sight?
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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 fueling 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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