By combining the strong historical return character of the momentum factor with global diversification and risk management, AAA portfolios deliver steady growth with specific risk targets and controlled maximum losses, regardless of economic or market environment.
PERFORMANCE AND INFORMATION – US & INTERNATIONAL MANDATES
|US Mandates||Investment Vehicle||Inception Date|
|ReSolve Adaptive Asset Allocation: 16% Volatility (USD)-Levered||Separately Managed Account||July 2016|
|ReSolve Adaptive Asset Allocation: 12% Volatility (USD)-Levered||Separately Managed Account||July 2016|
|ReSolve Adaptive Asset Allocation: 8% Volatility (USD)||Separately Managed Account||Oct 2015|
|ReSolve Adaptive Asset Allocation: 8% Volatility (USD)-Levered||Separately Managed Account||Oct 2016|
PERFORMANCE AND INFORMATION – CANADIAN MANDATES
|Canadian Flagship Mandate||Investment Vehicle||Inception Date|
|ReSolve Adaptive Asset Allocation (CAD)8% Volatility Target||Separately Managed
Account (Canada Only)
ReSolve Global Adaptive Asset Allocation strategies (AAA) harness two of the most powerful smart beta factors, momentum and low beta, to regularly calibrate a diversified portfolio of global asset classes in response to material changes in world markets. The AAA methodology stands apart from first generation Global Tactical Asset Allocation (GTAA) strategies1 because portfolios are constructed with the awareness that thoughtful diversification can elevate a portfolio to be greater than the sum of its constituent assets.
In addition, AAA mandates are built to target a specified level of portfolio risk in order to accommodate investors’ diverse risk preferences. To manage portfolios to different risk targets, portfolio holdings will often vary across mandates; for example, lower risk mandates would be expected to hold a larger proportion in bonds on average, while more aggressive mandates would exhibit an equity bias and use modest leverage when appropriate. Where necessary, overall portfolio exposure will expand and contract in response to observed changes in portfolio risk.
Who is this strategy for?
AAA was engineered specifically to address the unique risk/reward equation faced by investors who require fixed portfolio income or distributions. These investors are often seriously exposed to the impact of large losses, which permanently impair long-term income sustainability. Also, aside from the risk of disappointing average returns, investors drawing income are vulnerable to the fact that returns may come in a disadvantageous order. As such, retirees face a stark, but quantifiable trade-off between a desire for high returns to fund lifestyle requirements, and a need for steady growth.
By combining the strong historical return character of the momentum factor with global diversification and risk management, AAA portfolios target steady growth with prudent risk of loss, regardless of economic or market environment.
No story, no forecasts, no biases; just maximum returns per unit of risk…and peace of mind.