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MULTI ASSET FOR US CLIENTS

US AlphaPredictor

AlphaPredictor is a forwards looking asset allocation engine, drawing on thousands of data points, to determine which are the right assets to hold at the right time, and then dynamically position accordingly.
Introduction to AP
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MACRO MULTI ASSET

Investment Style

Systematic multi-asset investment strategy driven by the AlphaPredictor® model.

LOREM IPSUM DOLER

Investment Philosophy

May Be Suitable For

Investors who are looking for risk managed portfolios available to suit a wide range of objectives.

Investors looking for access to third party, institutional quality management.

Investors looking for cost effective and diversified portfolio construction, with a focus on the most liquid asset classes and funds.

Strategy Facts

Allocation TypeMulti Asset
Approach Diversified Portfolio of independent 3rd party funds
No. of Risk Profiles 3
Risk Profile CalibrationDynamic Planner; Finametrica
Holdings UniverseUS Compliant ETF's
Currencies AvailableUSD
Minimum Investment50,000
Annual Managament Charge0.75%
Ongoing Charge Figure1.17%

Strategic Asset Allocation Decision Making

Stages of the typical business cycle. What can we expect from the economy and markets?

End Cycle

Contracting

Early Cycle

Recovery

Mid Cycle

Expansion

Late Cycle

Slowdown

  • End Cycle
  • Falling activity
  • Profits decline
  • Policy eases
  • Credit spreads widen
  • Early Cycle
  • Activity rebounds
  • Profits grow
  • Policy still easy
  • Mid Cycle
  • Activity peaks
  • Profit growth peaks
  • Policy neutral
  • Credit spreads tight
  • Late Cycle
  • Activity moderates
  • Profits under pressure
  • Policy contraction
  • Contracting
  • Increase allocation to bonds
  • Reduce equity exposure
  • Emphasive defensive sectors such as consumer staples
  • Recovery
  • Increase equity weightings
  • Increase exposure to corporate bonds
  • Increase exposure to cyclical assets
  • Expansion
  • Maintain large equity weightings
  • Maintain weighting to corporate bonds
  • Gain exposure to inflation sensitive sectors
  • Slowdown
  • Reduce equity exposure
  • Improve credit quality in fixed income
  • Reduce exposure to cyclical sectors

Portfolio Construction Process

AlphaPredictor provides deep insights into the key drivers of investment asset and fund behaviour, along with important macro sensitivities which may impact performance.

Identifying the Right Data

Our model focuses on the right data not just ‘big’ data. Macroeconomic variables to identify changing economic conditions and risk factors to help determine what is driving risk and returns.

Mapping Relationships

Our model learns about the evolving relationships between macroeconomic variables, risk factors and asset prices to calculate probabilities and make predictions about the future.

Engineering Performance

Our powerful and flexible portfolio engine can be used to build portfolios that aim to outperform benchmarks, achieve specific objectives and/or reflect ‘house’ views.

Learning and Forecasting

  • Identify state of the economy
  • Model risk and macro factor relationships
  • Forecast behaviour of asset prices
  • Learn from new date to refine future forecasts

Input

Macroeconomic variables are used to identify the state of the economy

  • Default spread
  • Term spread
  • Inflation
  • Interest Rate
  • Dividend yield
  • Sentiment

Risk factors are used to identify risk exposures and the return drivers of investment assets

  • Equity beta
  • Fixed Income beta
  • Credit beta
  • Commodity beta
  • Property beta

Portfolio Construction

  • Multi variate: Better diversification
  • Probabilistic: Robust solutions
  • Flexible: Investor-specified outcomes
  • Risk Management: Fully integrated capability

 

Asset Allocation

AlphaPredictor’s asset allocation will be dependent on the investment profile selected. The below is a typical asset allocaton for the AlphaPredictor Balanced US Client profile. All profiles are available on in US Dollars.
  • Government Bonds
  • Corporate Bonds
  • High Yield Bonds
  • Inflation-Linked Bonds
  • S&P 500 Index
  • Nasdaq Index
  • Russell 2000
  • Regional
  • Global Infrastructure
  • Industrial Metals
  • Physical Glod
  • Real Estate
  • Water
  • Renewable Energy

Portfolios At A Glance

We offer three levels of investment risk across the AlphaPredictor range to cater for those looking to maximise capital growth, those looking for capital preservation and for all those in between.

Portfolio Exposures

Fund NameHolding
Vanguard Global Bond Index 11.0%
HSBC FTSE100 8.0%
HSBC FTSE All Share Index 7.5%
Marlborough Global Bond 6.0%
Fidelity Index US P Inc 5.0%
HSBC American Index 5.0%
Schroder UK Corporate Bond 5.0%
TB Evenlode Income B Inc 4.5%
Aegon High Yield Bond 4.0%
Cash4.0%

Why Consider AlphaPredictor US Clients PWS?

01

Provides access to the AlpaPredictorTM dynamic macro regime investing process.

02

A globally diversified portfolio, multi asset portfolio, with a disciplined, repeatable forwards looking process.

03

An investment universe that monitors nearly 50 different asset classes and sectors.

04

AlphaPredictor PWS is available in a range of US tax-efficient wrappers, including IRA, ROTH IRA, 401k's or in a General Investment Account (GIA).

05

Dynamic portfolio rebalancing ensures consistent adherence to risk profile and active management.