Investment Strategy
Welcome to the latest edition of the Angles & Perspectives - Q3 2026
In this edition, we discuss the similarities between our own integrated investment process and a total portfolio approach. Head of Research Kevin Cousins provides an overview of the total portfolio approach before Head of Equities Justin Floor provides a practical overview of how this process is implemented in the PSG Balanced Fund. In the final article, CIO John Gilchrist and Depute CIO Greg Hopkins take a look at how our culture and team structure help us deliver better outcomes to our clients over time.
Our 3M investment process is deeply rooted in the belief that we make the best long-term investment decisions by focusing on the quality (management and moat) and price (margin) of the assets we buy. We fully believe that our detailed research and bottom-up process sets us up to select the best assets. However, a collection of good assets can still fail to be an optimal investment. In our view, portfolio construction is about more than throwing together some ‘good’ assets and hoping for the best – it is about ensuring that the sum delivers a better investment journey than the parts do in isolation.
In this edition, we take a closer look into our portfolio construction process, which bears some similarities with the total portfolio approach (TPA) that has been gaining traction around the globe recently. Although we did not intentionally set out to replicate this approach intentionally, it flowed naturally from our bottom-up process and the desire to ensure that we are the best custodians of our clients’ capital.
In the first article, Head of Research Kevin Cousins provides An introduction to the total portfolio approach. He contrasts it to strategic asset allocation (SAA), which has been (and still is) the predominant approach among asset managers. However, a changing market regime means that some of the assumptions underpinning the SAA methodology are starting to erode. Looking ahead, the TPA provides a robust alternative for clients in navigating a challenging environment.
In the second article, Head of Equities Justin Floor uses the PSG Balanced Fund as a practical example of our total portfolio approach in action. Read Building one portfolio from our best ideas: Our total portfolio approach in practice for detailed insights into how this process is expressed in our funds.
In our final article, Chief Investment Officer John Gilchrist and Deputy Chief Investment Officer Greg Hopkins devote their attention to the part of the approach that is hardest to see from the outside, and in our view, the most important: the people, the team structure and the culture that make it work. Why a total team approach underpins our TPA thinking explains why culture and structure cannot be an afterthought, but is central to successfully implementing TPA thinking. You can also watch our video here.
We trust that you will find these articles insightful, and their guidance valuable in these turbulent times.
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Performance to 30 September 2026
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Local unit trust summary
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Global unit trust summary
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