Allocation Strategy
Advisory Services
We provide independent research capabilities for tackling challenging asset allocation questions
Allocation Strategy
Advisory
We provide bespoke research and advisory services for institutional investors, asset managers, sovereign wealth funds, pension funds, central banks and family offices.
Our research capabilities and analytical tools are independent resources available for clients to tackle challenging asset allocation questions. We can address a wide range of problems related, from comprehensive reviews or restructuring of strategic asset allocations to bespoke portfolio exposure analysis.
Strategic Asset Allocation
Strategic Advice
Strategic asset allocation (SAA) decisions require thorough research, careful deliberation and independent counsel. All SAA decisions are investor-specific and need to be treated as such.
We have significant experience of informing consequential asset allocation decisions at the world’s largest sovereign wealth fund on a wide range of topics.
- Optimal Equity share
- What is the optimal equity share/composition of fixed income portfolio?
- Spending rule
- What is a sustainable rate of spending from an endowment/sovereign fund?
- Rebalancing
- What is the optimal rebalancing regime for major asset classes?
- Portfolio Delegation
- How should portfolio delegation structure align total and relative performance incentives?
- Emerging markets
- Should emerging market equities be included in the strategic equity allocation?
- Real Estate
- What does listed real estate contribute to the portfolio's long-term risk and return?
- Diversification
- How internationally diversified should the equity portfolio be?
- Currencies
- Should investors hedge currency risk in their portfolios?
Changing Environments
Evolving Macro and Markets
An ever-evolving investment landscape and macro regimes meaningfully impact investors. We are often faced with new realities that differ drastically from experiences over the last decades.
Our approach to asset allocation is forward-looking, meaning we can evaluate hypothetical scenarios that are not constrained by the past. We think systematically in terms of key macro drivers, ensuring discipline when evaluating the impact and relevance of new macro and market themes.
- What is the outlook for fixed income investors given high government debt levels?
- What happens to my portfolio in the event of a major military conflict?
- What are the possible scenarios for the future structure of the international financial system?
- How should we think about ESG and asset returns?
- How do new general purpose technologies impact the global economy and investment landscape?
- How should a strategy be designed to harvest premiums and exploit inefficiencies in macro pricing?
Long-term
A long-term, rigorous approach
We understand the challenges of implementing and maintaining investment strategies for the long-term. We approach any asset allocation question with in-depth analysis, facilitated our comprehensive range of allocation tools. We ensure high standards in all our work, and value the rigour that models and frameworks provide. We maintain high quality data, model infrastructure, and research processes. These technologies and checks ensure high quality, efficiently delivered outputs.
Independence
Independent, tailored work
We explore optimal strategic asset allocation that is tailored to individual investor needs. We organise asset allocation by taking account of investors’ specific objectives, constraints and risk tolerance. We provide a forward-looking and intuitive representation of risk-return trade-off for relevant asset allocation alternatives and explore the optimal asset class rebalancing strategies.
Communication
Complex strategies made accessible
We understand that investors are held to account by key stakeholders. Asset allocation policies need to be intuitive and easy to communicate. We constantly strive to condense information and explain models in the simplest possible terms. We understand that modelling sophistication alone is insufficient for improving investment approaches.
We consistently apply a present-value approach to understanding assets and markets. When viewing assets as sets of discounted cash flows it becomes much easier to understand which factors influence market prices over the short and long term, why asset prices move together, and how asset prices connect to macroeconomy.
Learn more about our Advisory Services
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