Dynamic Asset Allocation
Drawing on our proven skills and capabilities in asset allocation, stock selection and derivatives management, the Dynamic Asset Allocation (DAA) strategy is managed by the same team and uses the same investment process as our successful Fiduciary service for pension schemes which has been running since 2003. A long-only strategy, DAA aims to produce equity-like returns with significantly lower risk using our four key investment beliefs of:
R&M seeks to diversify across a range of asset classes, individual positions and return drivers in order to reduce the risk of not meeting the investment objective.
R&M will make substantial use of rotation, whether this is in asset allocation or the selection of alpha strategies, in pursuit of added value and improvement of the stability of return relative to the objective.
Hedging risks that don't reward adequately
R&M will seek, where it is cost effective to do so, to hedge risks where we expect risk to be disproportionately high compared to the expected return and/or its credibility.
Appropriate use of active management
R&M will make use of active management within markets or segments of markets where we believe it offers meaningful added value, and/or the active strategy materially improves the likelihood of meeting the objective through a significant reduction in risk to the strategy.