Allocation Engine
Economic scenario generation for asset allocation
The AS Allocation Engine is an economic scenario generator that produces stochastic projections for a wide array of asset class returns and other economic factors. The Allocation Engine provides the forward-looking scenarios needed to make better asset allocation decisions.
Developed by asset allocation experts, the engine draws on cutting-edge research and real-world deployment experience. It is built using the latest technology and modelling methods, producing realistic distributions across all major asset classes and horizons.
Cloud-based simulations are delivered in a scalable manner, and is customisable to meet unique client needs, whether specific scenarios, tailored outputs, or seamless integration into existing workflows. Built with asset allocation in mind, the engine gives investors the tools to construct robust portfolios with confidence.
Key Facts
Key Features
Simulated paths
Asset return and macro paths
We provide simulated paths of all asset class returns and underlying macro variables from 1-quarter to 30-years. The simulation paths allow clients to test their strategies, create their own risk metrics, and impose their own views in a consistent way.
The stochastic projections capture realistic dynamics across all major asset classes and horizons, providing the foundation for robust portfolio construction and strategic asset allocation.
Applications
How the Allocation Engine adds value
The AS Allocation Engine gives investors comprehensive economic scenarios for constructing multi-asset portfolios, quantifying risk, and stress testing allocations. It is designed for investors who need to go beyond static assumptions and evaluate strategies under realistic, forward-looking conditions.
- Strategic asset allocation and ALM
- Use forward-looking simulated paths as part of any quantitative asset allocation exercises. The engine provides the scenario sets needed to evaluate long-term allocation decisions with confidence.
- Stress testing and risk quantification
- Understand the full distribution of portfolio outcomes across horizons, including tail risks, drawdown profiles, and the trade-offs between expected rewards and downside exposures under a range of economic environments.
- Scalable, cloud-based delivery
- Access economic scenarios through a cloud-based application that delivers results in a scalable environment. All outputs are available via API, cloud, and FTP — designed for seamless integration into existing workflows and platforms.
- Customisable to unique client needs
- Tailor the engine to specific requirements — whether bespoke scenarios, tailored output formats, or custom integration. Built with asset allocation in mind, the tool adapts to the way each client works.
Read more
Asset allocation and investing in a changing world
How can investors respond to macro uncertainty and changing regimes?
Designing macro-resilient portfolios in a changing world
A process for building portfolios that are resilient to macro risks over the long term.
Asset allocation for sovereign funds: why the macro context matters
Why sovereign fund allocation decisions need to account for macro dynamics.
Coverage
Comprehensive coverage of globally investible asset classes, markets, and segments
Kingdom
Markets
Corporate
bonds
bonds
bonds
Kingdom
Developed Markets
Markets
Gov. Bonds
Corporate Bonds
Corporate
bonds
bonds
bonds
Contact Us
Find out more
Contact us to learn more about how we can help with your asset allocation needs.
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