Alternative To Beta

Strategy focus

LFIS’ “Perspective” strategy is a differentiated multi-asset approach. With a focus on European equity and bond markets, we seek to extract income from a broader range of market scenarios using liquid index-based instruments for enhanced liquidity and reduced idiosyncratic risk.

Perspective invests primarily in European investment grade credit and equity markets. Where the strategy differs from traditional multi-asset funds is in the way it achieves this exposure. Specifically, Perspective seeks to capture the insurance premia embedded in these asset classes. The insurance premium is the structural spread (or premia) between the medium-term worst-case scenarios priced into market instruments and the actual probability of these scenarios materializing. 

Perspective is part of LFIS’ range of ESG solutions and considers sustainability risks in its decision-making process. The strategy includes positive ESG screening in constructing its equity portfolio and the eligible investment universe also excludes companies active in the controversial weapons, thermal coal and tobacco sectors, or which have low scores according to international norms and principles and LFIS’ in-house ESG rating methodology.