At UBC IMANT the following beliefs inform our approach to investments, our choice of strategies and our day-to-day decision-making.
- Most investors are risk averse and must be rewarded for taking on more risk.
- Long term, asset mix is the main determinant of portfolio return and risk.
- Diversification among sources of return and drivers of risk improves portfolio risk and return characteristics.
- In the long run, risk-adjusted returns of various asset classes are expected to be in-line with each other.
- The risk of each asset class is not constant over time.
- A long term investment horizon provides opportunities to earn higher expected risk premiums from illiquid assets.
- Market timing through tactical asset allocation does not consistently add value or return.
- Costs have material impacts on investment returns and require explicit management.
- Investment constraints may reduce risk adjusted returns.
- Incorporating Environmental, Social and Governance (ESG) factors in the investment process and advocating good ESG practices is in the best long-term interest of shareholders.
Updated March 2018