1OAK Multi-Manager portfolios are customised institutional-grade actively managed portfolios providing access to best-in-class liquid alternative managers implementing diverse investment strategies, both systematic and discretionary, across styles such as CTA, Global Macro, FX and Commodity specialists. Portfolios are managed by 1OAK's dedicated investment team, active in the liquid alternative space since 2010.
The portfolios are designed and managed for professional investors who are typically looking to generate positive absolute returns with only a low correlation to equity markets or for investments which display defensive qualities during periods of financial market turbulence.
1OAK Multi-Manager offers many unique features:
- Access to best-in-class liquid alternative managers, in many instances not otherwise easily accessible.
- The ability to fully customise portfolio characteristics and investment guidelines.
- Active management through a disciplined investment process, delivered by a dedicated investment team with deep knowledge of the liquid alternatives space, active since 2010 and over many investment cycles.
- Multiple layers of manager due diligence, including Deutsche Bank's stringent manager requirements together with 1OAK's ongoing manager research and manager monitoring process.
- Integrated risk management system offering maximum transparency and control.
- Tailored investment instruments to suit investor-specific requirements.
Model portfolio return analysis
Our model portfolio has been designed for mandates with a return target of cash plus 4.5% and with a Sharpe ratio of 1.
The Model Portfolio realised 4.6% annualised return with a vol of 3.4%, a Sharpe of 1.3 a maximum drawdown of -3.6% over the period, exhibiting correlations of 12% to the S&P500 and -5% to the Barclays Global Bond Aggregate Index.
Model portfolio composition
Model portfolio allocation by manager style and strategy type:
An example investment objective would be to seek negligible correlation to traditional investment portfolios and a target Sharpe ratio of 1 given a predefined level of minimum return above cash of 4.5%.
Investors have different requirements when selecting a portfolio of alternative investments. The 1OAK Multi-Manager service is bespoke to the requirements of each investor and is structured to meet specific needs in terms of target return, volatility, correlation with equities or other assets.
Liquid alternatives platforms, such as Deutsche Bank's award-winning dbSelect platform, offer access to a wide range of best-of-breed managers with transparency, robust investment oversight and liquidity, and so are an efficient way to implement a multi-manager strategy.
From the broad investment universe available on a platform, a narrower list of investable managers is selected and a quantitative allocation process is used to allocate between funds according to the investor's needs. Typically this will be optimised for one characteristic, such as maximum Sharpe ratio or for maximum diversification, under constraints such as target volatility or target return.
1OAK believes that a quantitative approach is a core foundation of portfolio construction, but that a discretionary overlay is a vital part of the management of any portfolio. Our discretionary overlay has been developed over many years and is based on qualitative factors, market conditions and ongoing manager due diligence. This is carried out by 1OAK’s dedicated Multi-Manager Investment Committee, comprising a team of specialised investment professionals, including the CRO in an oversight capacity. 1OAK have developed a proprietary risk management system enabling the highest levels of transparency, position monitoring and control.
1OAK Multi-Manager portfolios principally invest in managers available on dbSelect, Deutsche Bank's award winning liquid alternatives platform, and which are subject to Deutsche Bank's stringent due diligence requirements.
From this broad investment universe, a narrower list of investable managers is selected and revised on an ongoing basis using 1OAK's in-house manager research and due diligence process. Portfolio allocations are made exclusively from the list of investable managers. Portfolios may, on request, be constructed on different manager platforms.
Our Multi-Manager portfolios provide managed exposure to a diversified allocation of best-in-class liquid alternative managers implementing a wide range of investment strategies across liquid asset classes, globally.
1OAK employs a well-tested and strictly-disciplined investment process blending a quantitative approach via a machine learning investment algorithm, together with discretionary allocation decisions based on qualitative factors, market conditions and ongoing manager due diligence carried out by 1OAK’s dedicated Multi-Manager Investment Committee.
The investment approach is tailored for each portfolio in order to deliver the required portfolio characteristics, such as target return, target volatility or the degree of correlation with equities.
Risk management is implemented via purpose-designed risk management systems enabling the highest levels of transparency, position monitoring and control.
1OAK Multi-Manager strategies are available as listed actively-managed certificates and in total-return swap form. They are also available as managed accounts on a number of platforms, including Deutsche Bank’s dbSelect platform.
Strategies can also be designed to suit leveraged investments such as call warrants and leveraged certificates.
Market Risk: the value of assets held by the strategy will increase and decrease. The value of the strategy may be adversely influenced by changing interest rates and FX rates.
Operational risk: the strategy may suffer material losses as a result of human error, failures of systems and processes and inadequate procedures and controls.
Derivative / leverage risk; the strategy uses derivatives to get exposure. The use of derivatives allows the strategy to have leveraged positions. Increased leverage may result in losses greater than the amount invested.