TM Fulcrum Diversified Liquid Alternatives Fund (DLA)
Innovative exposure to liquid, under-represented assets using disciplined impartial implementation to select investments.
investment objectives
investing
Introduction
The TM Fulcrum Diversified Liquid Alternatives Fund (DLA) is an unconstrained, liquid portfolio investing across Real Assets, Alternative Credit and Diversifiers. The objective of the Fund is to generate returns of cash plus 4% per annum over rolling 5-year periods, net of fees, with volatility lower than equity markets.
Critical to the construct of DLA is the integration of Responsible Investing and our disciplined impartial approach to implementation.
We complete detailed research into investment ideas in a nimble fashion, investing through a carefully selected mix of fully active third-party managers, passive strategies and bespoke internally managed themes, which reflect global megatrends such as climate change, demographic shifts and the evolution of technology. There are no performance fees at any level across all investments and no additional layer of fees for internal strategies.
Investment Universe
Listed Real Assets (40%)
- Listed Infrastructure
- Listed Real Estate
- Liquid Natural Resources
Alternative Credit (40%)
- Convertible Bonds
- Emerging Market Debt
- High Yield Bonds and Loans
- Securitised Credit
Diversifiers (20%)
- Equity Long/Short
- Discretionary and Systematic Macro
- Event Driven
- Alternative Beta
- Relative Value
Investment Philosophy
The market rewards long-term behaviour, both in terms of lower transaction costs, the ability to harvest a rebalancing premium, the often-underappreciated mega-trends such as Climate Change, and their associated thematics. We believe that many long-term themes and investment opportunities are neglected and under-represented in client portfolios and our inquisitive approach to research can help to uncover these. To identify the most compelling opportunities, we assess the fundamental attributes of a particular investment as well as prevailing market sentiment in order to inform our investment decisions across the widest possible range of ideas.
Investment Process
Structured decision-making process via Investment Committee
Establish Strategic Mix of representative assets
Impartial implementation:
Establish Five Key Ingredients for Competitive Advantage for external manager allocations
2) Experienced Risk Takers
3) Targeted Inefficiencies
4) Effective Controls and
5) Sustainability Policy & Approach
Explicit underwriting/scoring for each investment considered, based on Four Key Factors:
2) Diversification
3) ESG
4) Terms & Conditions
Extensive Operational Due Diligence with veto power
Responsible Investing
We strongly believe that the thoughtful integration of Responsible Investing considerations will further enhance client outcomes over DLA’s investment horizon. We have explicitly embedded this in our investment process, as one of our Four Key Factors, using a proprietary scoring framework. ESG factors will also typically inform our longer-term, thematic investment idea generation. We measure DLA’s carbon footprint and intensity with the goal of reducing these over time and, where possible, we seek to align DLA’s investments with the UN’s Sustainable Development Goals.
Please see our latest thought piece, which summarises our approach to integrating sustainability related considerations in our investment process.
Collaborating
Leveraging Fulcrum's Capabilities
The Alternative Solutions Team draws on the investment capabilities of Fulcrum’s deep resource of investment professionals, as well as external manager inputs.
Discretionary
Strategies
Alternative
Solutions
Quantitative
Strategies
The Team
Matt Roberts is the lead portfolio manager for DLA and is Head of the Fulcrum Alternative Solutions (FAS) team. DLA is overseen by the FAS Investment Committee.
Contact Us
If you have any questions, do contact us and we would be happy to have a chat.
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