Asset Allocation

Dynamic Asset Allocation

The starting point when considering DAA is the belief that it is not necessary to invest in all asset classes at all times: the key is to invest in those asset classes that rise in price. If clients share this belief, then they should be willing to consider a dynamic approach to asset allocation. DAA provides such an approach, one in which we focus on investing in those asset classes that rise in price and avoiding those that do not. This compares favorably to a more traditional balanced fund approach, in which positions are taken versus a strategic benchmark.

We believe that:

• Dynamic Asset Allocation (DAA) is a simple and transparent capability
• Returns are generated from selecting the right asset classes and regions, not through security selection
• It offers efficient and transparent implementation, without direct exposure to short positions or leverage
• It offers rigorous and fully-integrated risk management
• The capability is run by an experienced and credible team, dedicated to managing TAA/DAA mandates