The Consilium approach

The Consilium Investment Committee is a team of investment specialists within the broader Consilium company. They have extensive experience in the financial services industry including significant international experience. The Consilium Investment Committee also utilises an independent academic consultant who provides particular focus on governance, analytical support and policy review.

Investment philosophy

The Consilium Investment Committee (CIC) employs an evidenced based asset class investment philosophy when selecting underlying fund managers, individual assets and constructing portfolios. 

The Consilium Investment Committee strives to provide investment solutions that assist advisers to more reliably guide investors to achieving their long term financial goals. To achieve this, the Consilium series of portfolios are:

  • Firmly grounded in investment theory, and
  • Rigorously testing using empirical data.

Asset class investing is supported by a wealth of time-tested academic research such as Modern Portfolio Theory, the Efficient Market Hypothesis and the Fama French Five Factor Asset Pricing Model.

Key concepts of asset class investing include:

  • In liquid markets, prices reflect all the available information
  • Diversification is essential to reduce unnecessary risks and enhance reliability

Academic research has also identified specific factors that explain systematic differences in equity returns over time. These factors are supported by sound economic rationale, are persistent across historical time periods, pervasive across markets, robust to alternative specifications and cost effective to capture in well diversified portfolios.

The equity portion of Consilium portfolios tilts towards four such factors — the market, value, size and profitability factors.

In harnessing the robust evidence contained in market history and by consistently implementing investment strategies in a highly efficient way, Consilium portfolios utilise the best attributes of active and passive strategies by focusing on:

Portfolio monitoring

All funds in the Consilium portfolios are rigorously reviewed by the Consilium Investment Committee on a quarterly basis and performance is measured against appropriate benchmark indices.

Where a fund’s performance is consistent with its mandate and in line with broad style and/or asset class returns, no further action will generally be taken.

However, a fund may be placed on an ‘enhanced due diligence’ list, and subjected to a higher degree of scrutiny if it breaches certain established monitoring thresholds.

Each quarter the Consilium Investment Committee review all funds against the established monitoring thresholds. In general, if a fund has breached any threshold, further analysis and a written review will be undertaken.

Consilium Investment Committee