Investment approach

We believe our qualitative and quantitative processes can improve client outcomes

We have a long-standing tradition of seamlessly blending both fundamental and rules-based techniques across all asset classes, with a focus on fixed income strategies. Our ability to combine the different techniques best positions Taquanta to keenly understand the drivers of investment returns as well as their inherent risks, thereby delivering efficient solutions that meet each client’s investment objectives.

Our investment philosophy

Our philosophy can be summarised as total return investing

We refer to the overall investment philosophy that we use to construct our solutions as total return investing. Total return investing as a philosophy is about our belief in clearly defining and communicating the characteristics of an investment or portfolio in terms of risk, return, costs and consistency. We endeavour to understand the components of total return and the underlying causal relationship of these components. Investment returns are uncertain – even those that are ostensibly ‘guaranteed’, but we believe in the ability of our qualitative and quantitative processes to improve the probability that our clients will meet the investment objectives they have set.

We also believe that the solution must be offered at the right price. We want to ensure that clients maintain as much benefit as possible after all costs.

The implementation of our investment philosophy varies for the different strategies

For instance, a key component of total return in our money market and income funds is the extraction of the liquidity risk premium embedded in the term structure of investment instruments. Therefore, an intimate understanding of the liquidity risk of instruments held in a portfolio, in addition to the client’s anticipated liquidity needs, is a key driver of investment returns.