Capital-based asset allocation
Capital-based asset allocation offers you a portfolio with a mix of asset classes.
By allocating to different asset classes, we target consistent returns while aiming to limit the risk of investment losses.
Our portfolio managers start with the strategic asset allocation that we believe is most appropriate over an economic cycle. They then allocate assets between equities, bonds, cash and currencies and add alternative asset positions such as commodities or hedge funds to aim to improve risk-adjusted returns.
The tactical allocation of your portfolio is adjusted based on a number of factors that drive investment returns: absolute and historical valuation, relative valuation, correlation between assets, positioning in the economic cycle and market sentiment.
To reach our objective of growing your wealth while aiming to preserve capital we define loss thresholds, which we use to set maximum risk budgets in the portfolio.