A global multi-asset portfolio that seeks to keep volatility around 7.50%
Managed by an experienced flexible and absolute return team
ESG1 factors integrated within the investment process
We believe adapting the global risk budget of a multi-asset portfolio to the prevailing market context can add value. We identify market regimes by means of a tool (QuantNow) that incorporates macroeconomic factors, bottom-up indicators, and market data. The output of this tool is validated or overridden by our investment team.
We also think volatility targeting is one of the most reliable and useful tools for daily asset allocation. Our model allocates assets of a portfolio based on each asset’s volatility and acceleration of risk. It generates buy and sell signals designed to control volatility by maintaining its level close to a pre-defined risk budget.
Our Target Risk Balanced Strategy follows a simple, repeatable, and robust process:
- Selection of the market regime
- Asset allocation
- Selection of instruments
Team and resources
Our Flexible & Absolute Return team is based in London and Paris. Maya Bhandari, 15+ years of industry experience, and Mark Richards, 15+ years of industry experience, are the lead portfolio managers.
The team benefits from access to our global trading and risk management platform, Sustainability Centre, Quantitative Research Group, and Macro Research team.
- Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This material does not constitute investment advice.
- Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).