Portfolio allocation splitted into strategic and tactical asset allocation
The strategic part includes developing your own long-term view, based on macroeconomic data, social trends and political developments (fundamental macroanalysis) with a time horizon of several years. The resulting perspective serves as the highest level of orientation from which we derive our exposure on different asset classes in the long term.
We decide on the weightings of equities, bonds, and cash based on our economic assessment. The focus is on asset classes deemed to have the most favourable risk/return profiles in the current market environment, while the emphasis is on limiting absolute risk.
In the tactical part, we react to short-term developments and try to take advantage of opportunities and diversification effects between the asset classes. Quantitative models (quantitative and technical analysis) form the basis for the tactical asset allocation.
As a complementary instrument, the tactical asset allocation point out developments that we have not incorporated into our strategic asset allocation and open up an objective perspective for us.