ASSET ALLOCATION
Fiera Capital’s asset allocation service rests upon a qualitatively oriented and
fundamentally based process designed to optimize returns while preserving capital
in any market environment.
Internal fundamental research
In-house fundamental economic and market research provides the rigorous analytical
framework. The objective is to assess the intrinsic value of asset classes and their
relative value, and most importantly, to identify the catalysts that would change
these relative valuations. Our research process is driven by:
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Long-term horizon of economic cycle
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Monetary policy
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Analysis of liquidity conditions
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Relative valuation compared to historical relationships
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Use of scenarios
The results of our fundamental research are framed in economic and financial scenarios
that reflect the investment environment in which we are engaging. These scenarios
are key to our asset allocation decisions and have an impact on both the direction
and size of our positions.
The central scenario represents the capital market environment most likely to unfold
over the next 12 months. Two to three alternate scenarios identify the sources of
the most likely surprises that can materially affect capital markets.
Consultative decision-making
Our two-member asset allocation team is supported by an experienced Advisory Committee,
comprised of senior portfolio managers from major asset classes who make recommendations
and provide valuable input on the evolution of capital markets. The final investment
decision is made by the consensus of our two dedicated investment professionals,
ensuring a transparent and accountable decision-making process.
Client-driven strategy
The investment strategy is customized for each of our clients and applied relative
to their individual benchmark portfolio, with the position size properly calibrated
to be consistent with their respective risk-return profiles.
Our service offering include the following:
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Traditional balanced mandates |
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Income-focused mandates |
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Mandates with allocation to non-traditional asset classes
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Mandates with asymmetric return objectives, emanating
from increased client loss aversion |
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Overlay mandates |