Strategic Asset Allocation
Strategic asset allocation explains approximately 90% of annual returns. This implies that asset allocation is ten times more important than the two other sources of return combined, i.e. market timing and security selection.
We have several in-house developed and tested strategic asset allocation models. These models identify the optimal return per unit of risk on the basis of the optimal allocation between expected returns and risk of asset classes, the optimal allocation within a particular asset class between sub-asset classes and low or negative correlations between individual managers and other investment products. In addition we have a strong process in place to achieve our absolute return proposition and our objective of capital preservation in all market environments.
