Adaptive Balanced Risk-Managed

Adaptive Balanced Risk-Managed (ABRM) is a rules-based approach to allocating tactically within a strategic asset allocation framework. ABRM allocates to some combination of underlying strategies seeking to maximize growth opportunities over a full market cycle. In periods of heightened market volatility, the strategy has the flexibility to de-risk while managing portfolio duration and aiming to protect capital.

Objective: Capture long-term growth and income by tactically allocating among various risk-managed equity strategies spanning geographic, style and size segments

Primary asset class: Risk-managed equity, listed alternatives and fixed income

Tactical ranges:

• Equity Segment, 0%-70%
  • US
  • International

•  Income and Alternatives Segment, 30%-100%
  • Treasuries
  • Investment grade credit
  • Risk-managed high yield
  • Listed alternatives

Target allocation: 70% equity, 30% fixed income and alternatives

Portfolio construction ideas:

• Use as “income macro” allocation in aggressive income portfolio
• Incorporate as rules-based total return satellite in core portfolio
• Reduces max drawdown profile of an asset allocation portfolio allocated across equities, alternatives and fixed income