Conditioned Multi-Asset Models

The greatest value creation takes place at the asset allocation level.

Strategic asset allocation and its tactical management over economic cycles and changing risk regimes on the capital market determine more than 90 % of the long-term performance of an investment. Although investors are increasingly including illiquid asset classes in their portfolios, the international equity and bond markets are still the main basis for harvesting systematic risk premiums in investments. The relative performance of equity and bond markets in different regions, currencies and economic areas is determined by a variety of macroeconomic variables and fundamental valuation ratios. Investors use these as a guide when investing new funds or switching between asset classes in their portfolios. Thus, the management of a multi-asset portfolio requires a continuous evaluation of the countless factors influencing the expectations of market players, embedded in a disciplined tactical allocation process.