Waverton Multi-Asset Income
This fund draws upon the wider abilities of Waverton Investment Management to build a multi-asset portfolio of direct equities, fixed income and alternative strategies. The team places risk at the centre of the investment process by focusing on protecting capital in weak markets.
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James joined Waverton in January 2013 and is Co-Head of Multi-Asset Strategies. He serves as the lead manager for the Waverton Multi-Asset Income Fund, Multi-Asset Growth Fund, and Portfolio Fund. Additionally, he co-manages the Protection Strategy and plays a key role in managing the award-winning Waverton MPS. James is a member of the Asset Allocation and Institutional Stock Selection Committees and is a trustee of the Waverton Pension Scheme. He is a CFA Charterholder and has received recognition such as the Portfolio Adviser "Best Multi-Asset Fund - Balanced" award and multiple nominations in the Fund Manager of the Year awards.
Matthew joined Waverton in August 2019 as a fund manager in the Multi-Asset team, focusing on the Multi-Asset and Alternative Funds. He plays a key role in managing the award-winning Waverton MPS and contributes to the Asset Allocation Committee. Prior to Waverton, Matthew worked as a Multi-Asset Analyst at Janus Henderson Investors. He graduated from Loughborough University in 2015 with a degree in Psychology and holds the Investment Management Certificate. Matthew is also a CFA charterholder and was recognized as a Citywire Top 30 Under 30 in April 2021.
James joined Waverton in January 2013 and is Co-Head of Multi-Asset Strategies. He serves as the lead manager for the Waverton Multi-Asset Income Fund, Multi-Asset Growth Fund, and Portfolio Fund. Additionally, he co-manages the Protection Strategy and plays a key role in managing the award-winning Waverton MPS. James is a member of the Asset Allocation and Institutional Stock Selection Committees and is a trustee of the Waverton Pension Scheme. He is a CFA Charterholder and has received recognition such as the Portfolio Adviser "Best Multi-Asset Fund - Balanced" award and multiple nominations in the Fund Manager of the Year awards.
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Investment process
The philosophy and process of this fund is focused around the management of risk. The team does not define risk as volatility – but instead sees it as underperforming inflation over the longer-term and permanent capital loss.
The team meets these challenges by focusing on equities and real assets, which can drive capital growth over the long-term; and by diversifying not only across asset class, region, sector, style, duration, credit quality and currency - but also by employing hedging strategies to protect against certain outcomes.
The team taps into the experience of the wider group to invest in equities, bonds and alternatives to build a portfolio of 80-100 individual securities for the fund. The fund does not have a specific income requirement – so everything in the portfolio does not have to offer a yield. As a result, the yield on the equities side of the portfolio is relatively low in comparison to the fixed income and alternatives allocation.
The fund has held around 20-25% in alternatives since launch. The majority of this is held in real assets – the likes of property, infrastructure, commodities and specialist lending. This is because these assets are either explicitly or implicitly linked to inflation
The fund looks to achieve a consistent and sustainable income (as opposed to maximising yield or offering a specific income), this is because the team wants to be comfortable with the risk it is taking to achieve this yield. The yield has typically been around the 3-3.5% mark and is paid on a quarterly basis.
Risk
This fund employs a hedging strategy to help protect the portfolio in acute periods of market stress. Using derivatives can involve a higher level of risk, however, the team is experienced in this space and taps into its own Protection Strategy, for which James is also a co-manager.
Changes in exchange rates may impact the value or price of an income investment, while fixed income securities may be sensitive to interest rate changes (duration) and will increase and decrease in value as interest rates change.
The fund does have a number of risk management controls, beyond the diversification of assets. There are four monitoring & reporting and oversight committees to make sure the fund is meeting its objectives. The nature of the portfolio is designed to protect investors from downside risk.
ESG
ESG - Integrated
The team believes responsible investing forms part of its fiduciary responsibility to investors and stakeholders. The team focuses on engagement with companies rather than employing an exclusion/divestment strategy.
The management team also believes that if you are doing your research properly you are already covering the environmental, social and governance issues of any business – this covers the likes of poor data quality; inconsistent third party ESG ratings; and finding companies that can successfully adapt to ESG opportunities and risks.
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