Investment Process
To optimize investment results, the best approach is to activate the entire investment management process. This means that the optimal results can be obtained when Ikano has a “carte blanche” to do 2 things:- Protect the initial capital against losses and inflation
- Grow the initial capital with investment opportunities it identifies within a pre-defined risk tolerance
The Ikano All Seasons Fund fully subscribes to these starting points.
Its starting point is that investors’ capital should grow above the rate of inflation to secure capital preservation and provide downside protection. This means that the portfolio could go entirely into cash when the equity markets crash around us.
On the other hand, when markets come back and flourish, investors should benefit from investment opportunities by exploiting dislocations in the financial markets like undervalued stocks.
In both situations a risk management system will help control that risk exposure remains within pre-defined borders.
The investment team is constantly looking for investment cases, whereby potential investment opportunities are fed onto a so-called “long list”. If valuations look attractive, one of the analysts will make an in-depth case study on the viability of the investment as well as to which investment approach (active management or index replication solution) will deliver the best results. When the time is right, the proposal will be funded and monitored until it has reached its target or may be replaced when a more attractive proposal needs to be funded.
The investable universe for Ikano consists of equity-, bond-, cash-, real estate and commodity securities. The fund is denominated in Euro but currency overlays will be performed as well.
The Global Equity Fund and European Equity Fund have both pre-defined investment universes, respectively equities world wide, and European equities. Both funds benefit in principle from the ideas raised in their respective universes as well as the solutions applied. The risk management system will help minimize risks versus these universes.