The Diversified Growth strategy seeks to provide a target return of cash + 5% p.a. over a full economic cycle (typically 5-7 years) with a volatility range of 6-10% p.a.
The global portfolio is diversified across classes and is designed to take advantage of different market environments. We believe by combining asset classes, traditional and alternative, we can effectively reduce risk and achieve an attractive return.
Potential benefits for clients include:
- Stable returns in a range of market conditions
- Emphasis on downside risk management to protect capital
- High level of transparency and liquidity
- Efficiently invests in a broad mix of traditional and non-traditional assets
- All delivered at an attractive fee
The multi-asset team consists of over 100 investment professionals managing portfolios for clients globally. The team takes a solutions-oriented approach, with products based around five key investor outcomes: wealth preservation, risk-controlled growth, income, inflation protection and risk mitigation. Research is organized around a risk premia based approach, utilizing both quantitative and qualitative analysis.
We believe in the benefits of diversification and adopt a multi-asset, risk premia based approach. This allows us to better understand the linkages across asset classes under the following five tenets:
- Diversification is a potential means to an end, not an end in and of itself
- The path of returns matters, not just the outcome
- All assets can be disaggregated into constituent risk premia
- Since risk premia are not stable over time, we dynamically allocate assets using valuation and cyclical analysis
Diversified Growth seeks the most attractive risk-adjusted opportunities by investing in a wide range of asset classes to maximize diversification and reduce cross-asset class correlations. Every position must enhance returns, reduce risk or have incremental diversification characteristics to justify its place in the portfolio. We do not seek to add value by trading short-term gyrations in the markets; instead, we use the framework of our active asset allocation process to assess which asset classes we should be over and underweighting.
Asset allocation decisions are grounded by our three stage process, which is illustrated below.
- Canadian Trust
- Separate accounts
- Luxembourg Domiciled Fund