Active Asset Allocation

Setting boundaries for risk exposure and return potential

Diversification allows you to reduce risk, while providing you with access to global opportunities. It’s a sound investment strategy.

Short- and long-term recommendations

Our active asset allocation recommendations are based on our shorter-term expectations (a 6- to 18-month perspective). Our longer-term, strategic asset allocation recommendations are designed for investors willing to tolerate the ups and downs of the financial markets across a full market cycle that includes both bull and bear markets.

The asset classes that make up a given portfolio are based on investors’ goals (along with other constraints and preferences), including:

Our blend of qualitative and quantitative analysis enables us to design diverse asset allocation portfolios.

  • Liquidity to manage short-term expenses
  • Risk/return preferences
  • Tax considerations
  • Funding specific liabilities

Our blend of qualitative and quantitative analysis enables us to design diverse asset allocation portfolios that fall into two broad categories:

  1. Stability focused: Potential asset classes are screened according to risk metrics like peak-to-trough declines. We manage risk on an absolute basis, rather than relative to a benchmark.
  2. Growth focused: These help meet the goal of achieving the highest possible return for a given risk tolerance. With these, we manage risk on a relative basis, to ensure participation in broad market rallies.

Applying investor risk preferences to all aspects of the investment process has led to innovative investment strategies, such as a fund that aims to generate long-term returns similar to the broader equity market, but with less volatility, which have gained greater adoption in the industry.