Two layers
At group level the equivalent choice is between four risk-adapted strategies, and the client’s personal circumstances decide which one applies. See Our approach to investment.
What sits outside equities
The non-equity part of each strategy is spread across the asset classes the Investment Committee judges to offer both value and diversification, rather than value alone. In practice that means fixed interest securities, alternative investments, commercial property, commodities such as physical gold, and cash.The allocation is not left alone
Within fixed income, a proprietary framework reads the macroeconomic context to establish the stage of the economic cycle, alongside valuations and market technicals, meaning market structure, issuance activity and fund flows. The resulting view on the trajectory of rates and spreads becomes positioning used by the Investment Committee for discretionary mandates. See Investment solutions.Why flexibility is part of the allocation
Over shorter periods, assets traditionally treated as lower risk can be more volatile than riskier ones and can fall further, for example when growth is expanding, inflation is increasing and interest rates are rising from particularly low levels. Even across long periods, the behaviour of an asset class can detach from its long-run characteristics.Who sets the allocation
Naming a strategy is not enough on its own. The entity has to be named with it.
Related
- Portfolio construction, what the allocation is built from.
- Bordier in Singapore, the group’s other entity with a chief investment officer.
General information only. Not investment advice, not a solicitation and not an offer. Eligibility, services and terms differ by jurisdiction and by client. Speak to your banker about your own circumstances.