ABOUT THIS STRATEGY
This global allocation strategy seeks to provide investors total return by dynamically allocating its assets across a portfolio of global equity and fixed income investments, which may involve the use of derivatives for hedging purposes and to enhance returns. The portfolio is designed to actively adapt based on forward-looking views on extreme market movements, both positive and negative, with the goal of minimising the risk of significant loss in a major downturn while participating in the growth potential of capital markets.
With diversification across global assets and a philosophy concentrated on avoiding large drawdowns while participating in upward-moving markets, the strategy presents a potentially attractive anchor portfolio for an investor.
Looking Past the Average
Market environments are constantly changing and no two time periods will ever deliver the same experience. We embrace this concept and as such, do not use average risk/return measures in our process; rather, our major focus is on the dominant role played by tail risks in compounding returns. They are enhanced most by mitigation of tail losses and participation of tail gains, each period of time.
We measure both extreme positive and negative movements known as expected tail gain (ETG) and expected tail loss (ETL). Portfolio construction is driven by the ratio of ETG to ETL, while targeting a desired level of portfolio risk with the goal of maximising terminal value to investors.