Having invested in advanced portfolio analytics, the strategy of Alpha: r² is crafted with risk management at its core and is led by Gary Waite and Andrew Morgan. Drawing on their backgrounds in institutional fund management, the portfolio managers’ approach to risk encompasses three parts:
- Understanding drivers of past performance to shape future returns
- Ensuring Value at Risk (VaR) is deliberate and diversified
- Stress-testing portfolios to uncover hidden risks.
As well as formal risk control and analysis on each model for example VaR, Information Ratio and Tracking Error, the portfolios are also subject to 'informal' risk controls regarding trigger events such as management changes, automatic stop-loss reviews and corporate actions.
In addition to the standard models below, Alpha: r² offers an Ethical model where the asset allocation is aligned to the PIMFA Income benchmark.
- Conservative Higher Income
- Higher Income