Our expertise is based on an understanding of our clients’ attitude to and tolerance of risk. Risk management before asset management is a guiding principle in the way we manage a client’s portfolio.
Investment Style
We offer asset management services to private, institutional, pension, charity and trust clients. The Rocq Capital team provides a risk-based approach using traditional and innovative investments to preserve and enhance capital. We follow a disciplined investment process that utilises our team of investment professionals as well as many external research sources.
In order to achieve the client’s risk and return expectations, we construct portfolios that use multiple asset classes. We implement strategies that utilise both traditional and alternative asset classes.
Asset Allocation
Our investment committee meets monthly to consider economic data, market news and global events that may impact upon portfolios. Following these meetings, asset allocation is reviewed. We have always been autonomous and responsible for our own asset allocations and a monthly commentary is available on request.
Portfolio Construction
We invest in markets, regions and sectors through equities, bonds, funds and other instruments. We have particular expertise in fixed income and structured products. We allocate to alternatives as they have demonstrated their ability to dampen volatility in times of market stress and offer opportunities in normal conditions. Equity and commodity exposure is taken via funds rather than through individual stock selection, which we believe often leads to overtrading with little obvious benefit to the client.
Environmental, Social, and Governance (ESG)
As well as our traditional portfolios, we also offer multi-asset ESG portfolios, for clients who want their investments to have a positive impact on these factors. We take a pragmatic approach to ESG investing, and look for investments to use more than just an exclusionary screen. We want the investments to take their own view on the credentials of a security. An ever evolving area, as with our traditional security selection, we blend approaches from those that focus on only best in class to those that consider rapidly improving companies where the market has not appreciated their path to change. This covers a range of ESG options, from sustainable through to impact investing, and can cover the whole, or a part, of an investment portfolio.
Facts & Figures
Portfolios are priced individually and can include custody fees as required.
Our service includes access to the investment managers, cash management and formal written reports, including performance analysis on a quarterly basis.
Where we act as asset managers we do not charge for transactions but solely on the value of the assets. This aligns our interest with yours and gives us no incentive to overtrade. We can arrange the custody services through a number of our providers depending on specific client requirements.
ARC 3D Award
Rocq Capital was awarded the ‘ARC 3D Award’ during May 2017 in recognition of its commitment to transparency and due diligence.
Rocq Capital’s Chief Investment Officer John de Garis, said: “As we approach the first anniversary of becoming an independent business we are delighted to receive this award from ARC following scrutiny by them of our capabilities and process. This demonstrates to our clients that Rocq Capital is committed to high standards of transparency, oversight and integrity. Equipped with a team of investment professionals with international experience and a robust investment process we have produced a track record since 2008 that we are proud of which is accessible to both private and institutional clients”.
UN Principles for Responsible Investing (UN PRI)
In 2020, we signed up to the UN PRI, which requires us to consider ESG factors into investment decision making and we expect the investments that we use to similarly consider them. Consideration of all stakeholders to create a responsible future is a critical part of the investment process. For more information visit www.unpri.org
Discretionary - Multi Asset Class
We manage multi-asset portfolios for a variety of private and institutional clients and offer a suite of investment funds using our tried and tested investment process developed over the past decade. We are proud of the level of personal service that our small but well resourced team can provide.
The Rocq Capital team have worked together for many years providing clients with a consistent investment approach that has generated steady returns during this time. It is our top priority to understand a client’s needs and to construct investment portfolios that meet those expectations. Whether our clients are cautious or interested in more aggressive growth strategies we aim to deliver steady risk adjusted investment returns over the medium to long term.
The Investment Committee meets monthly and begins with a top-down approach to investment strategy, first considering macro economic developments and outlook and their effect on portfolios. Individual securities are then considered in the context of absolute and relative performance and how their relationship with other components of the portfolio has developed. The Committee will also consider how other risks may impact the portfolio, including currency, liquidity and regional exposure, amongst others. Any changes are made at the portfolio level by the investment team in accordance with the risk profile of individual clients and their investment objectives.
In times of market stress the Investment Committee meets on an ad-hoc basis to consider potential tactical changes.
Our manager selection process is thorough and we undertake due diligence on all the funds that we use to populate portfolios. We are in regular contact with the managers to understand their thoughts and the positioning of their investment strategies. We believe it is imperative to meet the managers, in person wherever possible, to fully understand their investment process, philosophy, risk management and portfolio construction techniques to see how they fit within the portfolio and are likely to behave in the ever changing market environment.
Discretionary - Fixed Income
The Rocq Capital investment team have managed fixed income and multi asset portfolios in Guernsey since 2007 and have extensive previous experience.
Fixed income portfolios benefit from a number of sources of return each contributing to the overall performance of a portfolio.
The starting point is having a clear view on the global macro environment and how we expect it to develop over the course of the coming months and years. From this we can build a picture of where we are currently in the interest rate cycle. We then consider the positioning of the interest rate markets, the shape of the yield curve and how it will adapt to the changing environment. This allows us to develop a strategy and position a portfolio according to its maturity or duration profile. Duration is a measure of how exposed a portfolio is to changes in interest rates. We can also add value to a portfolio through switches and opportunistic allocations to securities that we believe will benefit from either a macro trend or demand and supply dynamics in the market.
Government or Sovereign bonds are typically of the highest quality and backed by the national government issuing debt and therefore will, in normal market conditions provide less yield than most domestic corporate issuers. Supranational bonds are issued by international organisations, for example the European Investment Bank, backed by the group of governments supporting the entity.
Credit or non-government bonds add another source of return. We allocate to credit markets according to the economic cycle but in general terms believe that over the long term credit will add value to a portfolio. Investment grade credits are securities issued by a corporation with a relatively low risk of default, as judged by rating agencies. Investment grade comprises of the range AAA to BBB- (S&P) and Aaa to Baa3 (Moody’s).
High yield bonds are those securities with ratings below investment grade and reflect the fact that their business model exposes the investor to an increased risk. As a result yields are typically significantly higher than investment grade and prices are much more volatile than other fixed income securities but careful selection in this sector can be rewarding. We tend to allocate to this sector through a fund, which gives the portfolio the benefit of holding a more diversified allocation eliminating some of the idiosyncratic risk that comes from individual securities.
From time to time the portfolio will have a reasonable allocation to cash or near cash instruments. It is important to have the ability to cut risk at times of uncertainty in markets. During the past few years many references have been made to how closely asset classes can be correlated during times of stress. Cash is not one of those asset classes.
Investment Funds
We also offer investment funds with a minimum investment of £5,000, you can find out more information here.
