UK - RMB International has launched a bespoke portfolio construction service for pension schemes.
The service is based on RMB’s range of multi-manager long-only and alternative investment funds delivered via Luxembourg-based Morgan Stanley SICAV.
RMB’s multi-manager approach combines traditional and alternative strategies and adds in overlays from external specialist managers, to meet the specific risk and return objectives of its institutional clients.
RMB said its asset class research had shown that active managers have a lesser probability of success in the efficient markets.
Chief investment officer Tom Joy said: “In conducting manager research, RMB International searches out those managers who are the most skilful exponents of their style, and then appoints two or three managers to each sub-fund.
“This level of manager concentration avoids the trap of naive diversification, which leads simply to expensive index-tracking. We are aiming to create alpha, not merely diversification.”
Its research shows that 88% of managers underperform the market in US and UK domestic bonds, whereas only 42% under-perform in Japanese equities. This allows RMB to employ passive managers in the efficient markets and active, high-alpha managers in inefficient markets thus making sure the investment process is tailored to each asset class.
The RMBI Multi-Manager SICAV consists of five equity funds, one fixed income fund and five funds of hedge funds.
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