Cash and liquid instruments for the Fund are managed by Thesis Asset Management plc. who have approximately £10bn under management and over 40 years experience.
The manager uses the following methodology:
Four investment committees cover the basic investment classes of Asset Allocation, Fixed Interest, UK Equities and Pooled Vehicles. Within each committee, individual analysts are allocated responsibility for specialist areas. This keeps the committees small to aid the decision making process.
On investment selection, the Asset Allocation team is the primary committee which, aided by independent economic data, formulates the strategic policies for different portfolio types. Information flows back and forth between all the committees via emails, conference calls and regular meetings.
Research is collated from a wide range of sources. Statistical data is also used to filter stock and funds for further research. For example, for direct equities, the Thesis Equity Stock Screen (TESS) scores are calculated based on ranking of the securities by way of dividend yields, earnings growth, earnings to price, earnings to sales, return on assets, and historic stock returns. These measures are used specifically for helping select non-financial stocks.
From all the available information, Thesis makes recommendations on each stock or fund within the relevant universes, which are rated either: BUY, HOLD or SELL. Regular attribution analysis is prepared to measure the success of the strategic policies and investment decisions at the stock and fund level.
Thesis aim is to be both accountable and flexible in terms of tailoring recommendations appropriately for each client and reviewing these on a regular basis.