Aberdeen’s investment process is predicated on the principles of our investment philosophy. At its core is the belief that we can create value at every step by combining a top-down and bottom-up approach.
While investment style will influence the level of contribution made by each component to portfolio strategy, the combination of the two elements below forms the basis of our investment process used across all our multi-manager portfolios.
Top-down: our top-down approach includes the development of real estate market forecasts and recommendations by Aberdeen’s in-house global property research and strategy team. These provide the foundation for a customized investment strategy which is developed for each portfolio. Their output is used to build an optimized portfolio structure which targets under‑priced sectors that are expected to deliver above average performance and maximize return for a given level of risk, consistent with each client’s investment objectives.
Bottom-up: our bottom-up approach involves thorough due diligence of potential investments and selecting what we believe are the best managers. This includes negotiating advantageous terms where possible to enhance performance. After closing the investment, we continue to monitor the manager and portfolio in order to identify and remedy any potential issues.