Strategic vs Tactical Asset Allocation

THE PROCESS OF DETERMINING THE APPROPRIATE EXPOSURES TO THE ASSET CLASSES OR GEOGRAPHICAL REGIONS WE SELECT, INCORPORATES:

STRATEGIC ASSET ALLOCATION:
• Identification of asset classes and geographic areas in which to invest using fundamental and technical analysis

• Combination of strategies, style and managers to meet the portfolios return and risk objectives

• Assessing asset classes for relative value, in addition to quantitative review of market sentiment/ personality, drawing on our proprietary combination of indicators

• Consideration of the best risk adjusted means of implementing long term thematic trends

TACTICAL ASSET ALLOCATION:
There will be periods where asset classes are trading at either a premium or a discount to fair value. During these periods we overweight the cheaper asset class(es) and underweight the more expensive one(s).

RISK MANAGEMENT:
Risk management and monitoring activities are key parts of the investment process. First of all, the portfolio manager diversifies the portfolio’s positions and respects investments limits, maximum exposure limits etc. Each investment rarely
amount to more than 20%- 25 % of the portfolio. We also monitor each strategy on the basis of market trends and new macro information available.