Our focus is on long-term return. Consequently we think of risk in terms of not achieving long-term return objectives. However, practically speaking we believe investors tend to think of risk in terms of absolute loss. So our general objective is to keep the risk of one-year loss roughly in line with each fund’s benchmark. The mix of managers and the number of managers is partly a function of this objective. There is no guarantee that this objective will be met.
The stated objective of each fund is to deliver long-term growth of capital. More specifically, we seek to out-return relevant benchmarks over the long run, which we define as at least five years. Taken further, we seek to outperform in the vast majority of rolling five-year time periods. There is no guarantee that these objectives will be met.