Investment Philosophy

Investment Philosophy

A top-down investment approach

Strategic Asset Allocation (SAA)

  • SAA is the reference long-term asset allocation defined for each investment profile.
  • Based on the “risk profile questionnaire”, it is elaborated in collaboration with the client and integrates the client appetite for risk, the targeted expected return, the ability to face potential losses, the retained investment horizon and any scheduled liquidity needs.
  • As SAA focuses on long term, the expected influence of business cycles and financial crisis are supposed to be less important as long-run expectations obey to structural factors like the population growth (or demographic change), government policies and productivity improvements.

Tactical Asset Allocation (TAA)

  • TAA focuses on the short to medium-term horizon and integrates factors as sentiment, absolute and relative valuations, markets’ momentum, sectorial attractiveness, liquidity and technical indicators.
  • Through TAA, the managers adjust the SAA in order to adapt to changing economic and financial conditions.
  • TAA can be assimilated to a market timing decision related to business cycles and market sentiment.

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