Our Approach
Our investment strategy is designed to generate long-term capital growth and sustained returns for clients. We avoid the most common investment pitfalls - big bets, unnecessary complexity, high costs, market timing and insufficient liquidity.
Our distinct approach is rooted in total portfolio design - the most important decision investors make. That’s why we focus on:
Asset Mix
Balancing riskier, sometimes illiquid assets, such as public and private equity, credit, infrastructure and real estate, with lower-risk, more liquid assets like nominal and inflation-linked government bonds.
Liquidity
Maintaining the liquidity required to navigate down markets without being a forced seller of assets at depressed values.
Other Exposures
Managing exposure to geographies, market segments and currencies to optimize diversification and resilience.
Constructing the Optimal Portfolio
Every portfolio we build starts with a deep understanding of our clients' unique needs. We collaborate with client boards, actuaries and external advisors to understand liability characteristics and portfolio design parameters.
Our expert teams work closely with clients to define investment objectives and advise on a strategic asset allocation that optimizes expected returns within their risk appetite. Supported by dedicated portfolio construction and research teams, we consider asset classes and risk factors to build resilient portfolios that adapt to evolving long-term trends and market fluctuations.
We leverage our scale, partnerships and expertise to construct total portfolios using both traditional and alternative investments - always with a focus on clarity, cost-effectiveness and long-term success.
Our Portfolio Management Framework
Phase 1 Planning and Forecasting
We work closely with clients to define their investment objectives, risk tolerance and constraints. These insights form the foundation of our approach.
Our team forecasts long-term expected returns and risk across asset classes, ensuring assumptions are grounded in rigorous research.
These inputs are integrated into asset-liability studies in Phase II, enabling strategies that align with each client’s unique profile and long-term goals.
Phase 2 Asset Allocation
Building on the asset-liability study, we construct a strategic asset mix designed for long-term resilience.
We assess sensitivity to different assumptions, market shocks, and stress tests. Alternative views of long-term capital market returns, and risk are developed to validate the robustness of base-case assumptions.
Stress tests evaluate downside scenarios, such as higher inflation or short-term negative performance, so portfolios remain prepared for uncertainty.
Phase 3Transitioning Asset Mix Toward Model Approach
We translate the strategic asset mix into IMCO investment strategies available to clients of all sizes.
Our team guides the transition from the original portfolio to an enhanced mix that reflects the results of the asset-liability study. Allocations remain consistent with each client’s long-term objectives and risk tolerance, ensuring clarity, cost-effectiveness and adaptability.
Cost Matters
We operate on a cost-recovery basis, ensuring that every dollar spent is focused on delivering value. By leveraging our scale and disciplined approach, we prudently manage investment and operating expenses to preserve our cost advantage.