Investment Philosophy

S.AG Private's approach is grounded in capital preservation, sustainable long-term growth, and disciplined risk management. We construct portfolios that combine strategic asset allocation with tactical positioning, using both passive exposures and active specialist managers where we believe they can add value through the cycle.

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Portfolio Construction

We build portfolios across two core components:

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• Core allocations (beta) provide diversified exposure to market returns across equities, fixed income, and other asset classes. These are implemented primarily through low-cost passive vehicles and liquid listed securities

• Satellite allocations (alpha) access specialist active managers, private market opportunities, and thematic strategies where we see potential for outperformance or differentiated risk-return profiles.

 

This framework allows us to control costs, maintain liquidity where needed, and selectively access specialist expertise.

 

 

 

 

 

 

 

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Manager Selection Process

We employ institutional-grade manager research and due diligence. Our manager evaluation encompasses:

• Investment process repeatability and intellectual framework

• Team stability, succession planning, and organisational strength

• Performance attribution across multiple market cycles

• Risk management framework and downside protection mechanisms

• Operational due diligence including fund governance and compliance

• Fee structures, capacity constraints, and alignment of interests

 

Active managers are selected only where we identify sustainable sources of alpha that justify the additional fee burden relative to passive alternatives. In highly efficient markets, we default to low-cost index exposure unless exceptional skill is demonstrable and repeatable.

For private market allocations, we conduct extensive operational and commercial due diligence, emphasising GP track records, fund terms, liquidity provisions, and co-investment opportunities.

 

Specialist Manager Access

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Sophisticated portfolio construction requires access to managers with demonstrable expertise in their specific domains—resources, commodities, sector specialists, private markets—rather than broad-based generalist coverage.

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Traditional brokerage platforms are structured for transaction execution and house product distribution. We provide independent access to specialist managers and conduct institutional-grade due diligence across public and private markets, free from product conflicts or platform constraints.

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Investment Principles

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• Diversification across uncorrelated assets — We construct portfolios with exposure across 15+ asset classes, geographies, and sectors to reduce concentration risk and smooth return volatility. Uncorrelated assets do not move in tandem and provide genuine diversification benefits.

• Risk and return are inseparable — Higher expected returns require accepting higher levels of risk. We calibrate portfolio risk budgets to each client's tolerance and objectives, and ensure clients understand the trade-offs inherent in their allocations.

• Active management where justified — We believe experienced active managers can add value in less efficient markets (small caps, emerging markets, alternatives, niche strategies). In highly efficient markets, we default to low-cost passive exposure unless there is clear evidence of repeatable skill.

• Long-term orientation — We design portfolios for multi-year horizons and do not attempt to predict short-term market swings. Discipline and patience are more valuable than market timing.

• Responsible investing — We incorporate environmental, social, and governance considerations where material to long-term value creation, and work with clients who have specific ESG preferences to reflect these in portfolio construction. 

 

New Zealand Allocation

 

We maintain a prudent home-market bias for most clients, reflecting New Zealand's role as a source of income, currency alignment, and familiarity. This is balanced with global diversification to access deeper markets, specialist managers, and opportunities not available domestically. The appropriate mix depends on each client's circumstances, tax position, and objectives.