Rowan’s Investment Management Process
Rowan’s investment management process is driven by proprietary research. The research is designed to identify investments offering the greatest investment potential and opportunities at the global macro level.
Using the outcomes from the proprietary research, portfolios are constructed in a risk efficient way. This approach brings together the objectives of the portfolios with the most suitable investments and appropriate asset allocation.
Where funds are concerned the research can be split into two sections. 1) There is a quantitative screening system that analyses all of the funds in the major fund sectors, as defined by the IMA, including the major offshore sectors. 2) After identifying potentially suitable funds we meet the fund managers. These meetings enable us to understand the investment process, the risks, how a fund is positioned, how it can be expected to perform in different market conditions and to identify the key ingredients in the funds investment process.
Without a global macro view portfolio construction takes place in a vacuum. Consequently a considerable amount of time is spent researching the economic backdrop at a global level. This is to identify the opportunities and risks in all asset classes both in the UK and overseas. As a part of this research we meet with economists to discuss their views and to assess economic trends.
All of this research is then brought together and used in the portfolio construction process.
This screening system grades every fund and tracks the improvement or deterioration in its performance. This is not a simple cumulative performance screen but one that assesses each fund on a series of data points, including consistency, volatility and risk/reward ratios.
