Proactive Asset Allocation
The Challenge
Institutional investors generally follow a predefined long-term strategic asset allocation as a policy benchmark. Since portfolio returns are primarily driven by asset allocation decisions rather than manager selection, investment results are largely determined by pre-set strategic asset allocation with little value added by investment staff.
Our Solution
Our Proactive Asset Allocation framework, based on decades of market experience and successes, help long-term investors capitalize on asset class (sub-asset classes) level opportunities and dislocations.
We first conduct a detailed examination of client portfolios, along with an assessment of the risk vectors embedded within. We secondly provide on-going in-depth analysis of the current market environment along with likely possibilities for investment opportunities and market dislocations. Thirdly, we devise a detailed and customized strategy and implementation plan for the client, covering timing, sizing and instruments. Finally, we help investors monitor and harvest the investments.
We intend to be patient and only take action in situations of highly asymmetrical risk-reward. The strategies are typically implemented through cash allocations or delta-one derivative overlays.