The portfolio managers seek exposure to listed infrastructure companies that own and operate physical infrastructure assets and do not typically invest in infrastructure support or servicing companies. The team believes that infrastructure is an under-researched area of global equity markets and knowledge asymmetries exist. The strategy’s investment process is driven by rigorous proprietary fundamental research employed by an experienced and well-resourced investment team. The team utilizes financial models to screen the universe based on a variety of fundamental inputs and believes that portfolios based on these alpha signals, combined with disciplined risk management, can help deliver attractive risk-adjusted returns over time.
Risk is monitored by quantitative risk system and managed at many levels – stock, sector, country, and style factors. We seek to diversify the portfolio across the global listed infrastructure market and adhere to an established risk framework, including constraints imposed by position limits versus a benchmark.
Enterprise Risk Management
Risk Management is an independent control function at OppenheimerFunds responsible for multiple areas of risk including investment risk, counterparty risk, enterprise risk and performance attribution. The team is headed by the firm’s Chief Risk Officer, who reports directly to the CEO. This structure ensures that the entire Risk Management team is independent from the investment process, allowing us to avoid conflicts of interest and providing a valuable second set of eyes on both investment and enterprise-wide risks.
Core Responsibilities of Risk Management Team
- Performs comprehensive portfolio reviews with all investment teams.
- Monitors individual security holdings across the entire firm.
- Works with investment teams to set specific maximums for the active weights of securities and sectors, as well as for predicted tracking error and other risk metrics.
- Independently monitors specified team risk metrics.
The aim of our Risk Management team is to enable the portfolio managers to make informed decisions on the risk/reward tradeoffs at play in their respective portfolios.