Strategic Asset Allocation

In building portfolios, Evergreen works with clients to set objectives, based on variables such as return, risk and cost. We can then build or test any currently used Strategic Asset Allocation to ensure those objectives can be met. Evergreen uses quantitative techniques such as Monte Carlo and Optimisation analysis with a variety of inputs, including both forecast and historical returns.

Dynamic Asset Allocation

We take a medium to long term approach to dynamic asset allocation. We will move away from Strategic Asset Allocation during periods of clear dislocation or mis-pricing, but, if no clear trend is present, tend to remain close to a portfolio’s Strategic Asset Allocation position. In order to formulate this positioning, Evergreen’s Asset Allocation Committee meets monthly to consider both short-term developments and medium-term trends in economies and markets. The Committee consists of two senior members of the Evergreen team and two external contributors, Stephen Deuschene and Dr Kingsley Jones. The meeting spans four hours and includes input from two fund managers each meeting. Clients can attend. Dynamic moves to portfolios are considered at that meeting and outputs in the form of easy-to-understand summaries on asset class views are produced. We then consider, on a client by client basis, what the views of the Committee might mean to portfolios and adjust only after Investment Committee approval.

Manager Selection

Evergreen’s objective is to use fund managers who we expect will outperform over a reasonable period. All fund managers used by Evergreen or its clients are visited at least twice a year by Evergreen staff and a Manager Note is written as a result. Over time, we build a deep understanding of the manager. We undertake extensive primary due diligence on managers. The Evergreen manager research process is forward looking and has been developed based on the extensive experience of the senior members of the firm. Evergreen’s objective is to identify fund managers who we expect will outperform over an investment cycle. Evergreen believes there are three key organisational area that need to be assessed when considering any fund manager.

The Investment Process

An investment process is a means of making decisions in a consistent manner. Processes govern the style of management and the level of risk the people are allowed to take on when making investment decisions. A review of investment process often highlights whether a fund manager has a structured decision-making procedure, which either works – or doesn’t.

The People Who Drive It

A sound investment process needs to be driven by good people. Successful investment management requires good decision-making ability. People make decisions, and some make them better than others. We assess their individual ability as well as their effectiveness as a team.

Whether it is a Well-Run Business

The investment management business is just like any other business. It needs to be well managed and involves the successful co-ordination of sales activity, marketing and effective client service. Parentage or ownership is also important if the business is to be a successful ongoing concern. Parentage must also fit with the fund manager’s investment philosophy so the goals for the business are both realistic and consistent with expectations. Evergreen will also undertake extensive due diligence on managers opportunistically and where it sees a gap in available research. This is particularly the case with new or small managers.

Portfolio Analysis – GreenVUE

Evergreen has developed its own internal portfolio analytics system, GreenVUE, using advanced coding languages. GreenVUE is used to provide portfolio reporting to our clients. It provides

  • simple performance reporting
  • client-level sales tools , as well as
  • advanced analysis such as attribution analysis and stress testing.

Our on-going investment into GreenVUE is significant. As a result, it is always developing.


Beyond one-on-one interactions based around client needs, Evergreen communicates with its clients on a variety of other topics. These include:

  • Our monthly Economic and Market Commentary. A one page summary of market and economic events, suitable for end clients.
  • Our monthly Asset Allocation Committee meeting. These meetings earn advisers who attend up to 3.75CPD.
  • Our Asset Allocation Positioning document, based on views formed at our Committee meeting.
  • Our Asset Allocation Documents folder. Advisers are able to access a broad array of third party articles and documents on topics related to economics, investment and markets. Manager Notes. Each time we see a fund manager, the team writes a note providing a summary of the information discussed and outlining our views on the strategy. The team reviews each note and discusses before making it available to all clients.
  • Evergreen News. Our fortnightly email outlines which managers we’re seeing, any company updates and other relevant information. It lets our clients know what we’re working on. Ad hoc communication, which occurs as required.