Pension Funds
Engineering Bespoke Global Portfolios
Pension funds today face a dual challenge: generating sufficient returns to meet liabilities while navigating an increasingly volatile global market. At SCGX Capital, we reject the notion of off-the-shelf products for sophisticated pension funds. Instead, we engineer bespoke global portfolios designed to align precisely with specific risk tolerances and regulatory constraints. Whether a high-dividend yield strategy is required for cash-flow matching or a growth-focused approach for long-term capital accumulation, our firm co-creates the solution.
The Quantamental Advantage in Stock Selection
Our global philosophy builds on a powerful convergence of quantitative discipline and fundamental insight. We utilize proprietary data models to screen thousands of opportunities across developed and emerging markets, identifying anomalies that pure fundamental analysis might miss. However, machines do not make the final call. Our experienced investment team validates every signal, ensuring we capture sustainable alpha. This “Quantamental” approach allows pension funds to benefit from the breadth of big data combined with the depth of human expertise.
Active Ownership and Climate Transition
As shareholders, pension funds possess a unique power that fixed-income investors lack: the right to vote. SCGX Capital leverages this active ownership to drive long-term value and mitigate systemic risks within our global holdings. We do not simply divest from carbon-intensive industries; we engage with management teams to enforce credible transition plans aligned with the Paris Agreement. By integrating sustainability factors directly into our selection, we ensure the portfolio contributes to a net-zero future without compromising financial returns.
Capturing Drivers of Return Through Smart Beta
Traditional market-cap weighted indices often expose pension funds to unrewarded concentrations of risk. We offer specialized factor-based solutions that target specific drivers of return, such as Value, Momentum, and Quality. By scientifically tilting portfolios toward these proven factors, we help pension funds achieve superior risk-adjusted returns over full market cycles. This systematic approach provides a
transparent, cost-effective alternative to traditional active management, allowing pension funds to harvest long-term premiums while maintaining rigorous control over tracking error and sector deviations.
Navigating Growth in Emerging Markets
True global diversification requires looking beyond established Western markets. SCGX Capital provides dedicated access to the high-growth potential of Emerging and Frontier Markets. These regions offer compelling demographics and technological leapfrogging opportunities. Our specialized investment team employ rigorous governance screens and liquidity filters to navigate these complexities safely. We help pension funds capture the upside of the developing world’s economic expansion while adhering to strict environmental social standards to protect
reputation and capital.
Defensive Equities for Liability Management
For pension funds entering the de-risking phase, exposure to markets remains necessary for inflation protection, yet volatility is the enemy. Our low volatility strategies are engineered to cushion the blow of market downturns while participating in up-markets. We focus on high-quality opportunities with stable
earnings, strong balance sheets, and consistent dividend payouts. This defensive posture helps smoothen the funding ratio volatility of defined benefit schemes, providing a smoother ride through turbulent economic cycles without sacrificing long-term compounding.
Innovation Through Institutional Collaboration
Innovation at SCGX Capital is driven by the evolving needs of global pension funds. We actively facilitate knowledge sharing among our institutional client base, discussing how peer funds in the United States, Europe, and Asia are solving liquidity and regulatory challenges. This collaborative ecosystem informs our product development, leading to next-generation solutions like biodiversity-integrated funds or AI-driven sentiment analysis. By listening to the collective wisdom of leading asset owners, we ensure our solutions remain ahead of the curve.