Portfolio Construction
Dynamic asset allocation: the portfolio is adjusted as the following factors are assessed together.
Market valuation
Where assets stand relative to earnings, yields and history.
Macro economy
Growth, inflation and policy across the regions in which we invest.
Interest rate environment
The level and direction of rates, and what they imply for asset prices.
Liquidity
The depth of markets and the ease with which positions can be entered and exited.
Volatility
Realised and implied volatility as both a risk and a source of opportunity.
Risk / return
Expected return measured against the risk taken to obtain it.
Geopolitical factors
Events and policy that reshape markets faster than fundamentals.
Market cycle
Where the cycle stands, and how allocation should lean.