Global Focused Strategies

Global Focused Strategies (GFS) aims to generate positive performance each year, whether markets are rising or falling. It targets a return of cash* +7.5% annually, measured over rolling three-year periods.

To achieve this performance target, GFS combines our best investment ideas at both a macro and micro level. For example, GFS can take advantage of our macroeconomic insights in the same way that our other absolute return portfolios do. Additionally, as a more focused portfolio, GFS can implement strategies at an individual security level within equities, fixed income, real estate and money markets.

Therefore, GFS has broad investment freedom to invest across asset classes and seek a variety of investment strategies that we believe will add value over our two- to three-year timeframe. At the same time, GFS must conform to rigorous risk constraints – we expect it to deliver the target return with 6% to 12% volatility or, more broadly, one-half to two-thirds of the risk of global equities. When implementing investment positions, GFS can make extensive use of derivatives in order to both enhance returns and mitigate risk.

Benefits of GFS

  • Fusion of micro and macro views – we construct GFS by combining multi-asset macro views with specialist security-specific insights covering equities, fixed income, real estate and money markets.
  • High return objective – GFS targets an absolute return typical of aggressive investments, which is substantially higher than the expected long-term equity-risk premium.
  • Uncorrelated returns – GFS has low correlation with assets such as equities and our other absolute return portfolios. It can therefore be a useful component for investors seeking to diversify their portfolios and enhance returns.