How we invest
- Operating globally with offices in Europe, US and Asia, we provide clients with specialist access to a range of alternative and pan-alternative investment solutions
- Adhering to a consistent philosophy and investment process first-hand research is at the centre of our approach
- Investing in alternatives can offer a range of benefits including the potential for enhanced returns, reduced volatility and additional tail protection, in some cases
We think the private equity market continues to be attractive for investors and over the longer term, though not guaranteed, we believe it is likely to maintain its outperformance over more traditional asset classes. We maintain the view that there is significant opportunity for private equity to enhance value through effective operational and financial change, benefiting both portfolio companies and investors in the asset class. The team’s investment expertise spans multiple geographies, industry sectors, stages (including buyout, growth, private debt, distressed and venture) and strategies (including Primaries, Secondaries and Co-investments).
The combined team of over 40 investment professionals was formed through the merging of Aberdeen’s original private equity team, the Scottish Widows Investment Partnership Limited private equity team, Aberdeen SVG and FLAG Capital Management, LLC (“FLAG”).
As a premier global private equity investment provider, the team offers a range of investment solutions for a variety of portfolio objectives including:
- Fund-of-Funds Vehicles
- Customised Separately Managed Accounts
- Listed Private Equity
- Portfolio Monitoring
- Investor Communication and Reporting Services
Hedge funds represent a wide range of different strategies that invest in traditional asset classes, but in a non-traditional way.
The types of risk/return profile available from hedge funds vary greatly.
To get the most out of a hedge fund allocation, investors need a deep understanding of the characteristics that a particular strategy will bring to an overall portfolio. This could be increasing or reducing overall risk, through styles that either act as substitutes for existing risk exposures, or diversifiers away from them.
We have a long and successful track record of building multi-manager hedge fund portfolios.
We do this through:
- In-depth and propriety strategy research & manager selection
- Dedicated operational due diligence and risk assessment
- Specialist portfolio construction teams and systems
Infrastructure investment offers the potential for attractive risk-adjusted returns; reliable inflation-linked returns; stable long-term yields and capital growth.
There are also the added benefits of defensive characteristics emanating from the provision of essential services and potential value enhancement through active asset management.
The current uncertainty in the economic environment highlights the benefits that such investment can bring to an investor’s portfolio.
In addition to being able to provide clients with exposure to third party infrastructure investments via our private markets multi-manager capabilities, we have a specialist direct infrastructure group focused on greenfield infrastructure projects that are underpinned by long-term government contracts.
The direct infrastructure team has a long, established track record and operates out of our offices in London, Edinburgh, Paris, Madrid and Sydney.
- Combines the experience of our strategy specialist teams to meet the bespoke needs of individual clients (e.g. real returns)
- Includes allocations to liquid and illiquid markets
- Provides flexibility
AQ Investors is the quantitative investment group of Aberdeen Asset Management. Formed in 2005, the team manages a diverse range of products across the risk-return spectrum including passive, smart beta, and active quant strategies. Using proprietary, systematic (rules-based) approaches to investing, our team manages equity, fixed income, and derivative portfolios across all markets to provide clients with cost-effective, risk-controlled, and transparent customised solutions.
Our investment process is grounded in academic research and proven investment theory. We identify sources of excess risk-adjusted returns, test them throughout the business cycle, and implement them in a systematic, cost-effective, and risk-controlled manner. By having a deep understanding of the individual sources of returns, we are well placed to optimally combine them to create solutions in line with our clients’ requirements, which could encompass pure index tracking, enhanced indexation; smart beta; or derivative overlays such as call options overwriting.
Property provides the potential for a range of benefits from income, growth, value add through active management and development, with a real asset underpin.
However, it requires large investment amounts and resource-intensive management to access directly; trying to invest directly on a global basis can also introduce legal and tax complexity.
As a result, many investors prefer to invest via funds and funds of funds, to best capture the breadth of opportunities available.
A multi-manager approach, in particular, can provide investors with access to high quality property funds and managers, offering exposure to any or all of debt and equity, prime and secondary locations, domestic, regional and global investments, and operating assets or developments.
Underpinned by three pillars:
- Running a quality investment process that is simple, robust and focused on risk management and transparency
- Providing quality investment solutions for our clients, including a range of commingled funds
- Seeking quality, best-in-class managers to drive long-term returns