Deliberately raising the benchmark.
More often than not, portfolio performances are compared to ASISA category averages. The problem with this benchmark is that these category averages include the performance of all funds in the relevant category – even the lower-quality funds – making it a sub-par hurdle for performance measurement.
Glacier Invest deliberately raises the bar by creating a new standard, the Strategic Strategy Allocation (SSA) – a high-quality benchmark against which the performance of our portfolios can be measured. Our starting hurdle is therefore automatically higher.
Our portfolio construction process is a rigorously disciplined one, which starts with the construction of customised benchmarks against which each of our risk-profiled portfolios’ performance can be measured. These customised benchmarks are referred to as SSAs (Strategic Strategy Allocations). They are created using high-conviction managers and strategies that increase the probability of robust returns in any market cycle. We only include the managers we have the most confidence in. These benchmarks are designed to beat the relevant peer group and are therefore more difficult to reach than peer benchmarks. They provide a better way to measure value-add and create greater transparency for investment committees.
The creation of these benchmarks enables us to execute repeatable investment evaluation and make disciplined, rational decisions around a portfolio of funds. The portfolios are diversified across investment styles, strategies and asset classes from various ASISA categories, ensuring that they are risk-managed throughout a market cycle.
The SSA represents our best long-term view per risk profile for superior performance without any tactical weights applied.
For more about the Glacier Invest SSA, read our brochure.
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