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
Return to Strategy Filter