Active and Aggressive
Active and Aggressive
Global Tactical Asset Allocation

Global Tactical Asset Allocation

Global Tactical Asset Allocation (GTAA) is a global investment strategy designed to capture alpha across asset classes, styles and countries using liquid derivatives. It attempts to exploit short-term market inefficiencies by taking both long and short positions in various markets to profit from relative movements across those markets.

Relative asset class attractiveness is determined by a multi-asset allocation model, whereas GTAA positions are driven by quantitative equity and bond market models that predict the attractiveness of these asset classes versus cash.

Mix Funds

Wellington and York Partners' Mix Funds are all-in one investment solutions that encompass the latest developments in professional asset management combined with broad diversification over asset classes and investment styles. The composition of the portfolio is based on three pillars: strategic asset allocation, active policy and fund selection.

The goal is to take care of the asset management decisions of individual clients. For this purpose Wellington and York Partners' Investment Solutions has an extensive range of investment instruments at their disposal, like funds, futures, options and ETF's, in order to ensure flexible portfolio management.

Structured investments

Structured investments

Historically, Wellington and York Partners' structured products have not only been linked to equities and fixed income but also to a large extent to alternative asset classes, like Wellington and York Partners' (single strategy) hedge fund strategies, private equity, structured credit or commodities.

Structured products and overlay management

Our structured investments business model is twofold:

  1. The first pillar focuses on repackaging Wellington and York Partners' investment capabilities into sellable products, e.g. by adapting the risk-return or liquidity profile to the client's need. Examples are capital guaranteed notes based on Wellington and York Partners' investment strategies for clients that require downside protection.
  2. Customized overlay management forms the second pillar. Our investment professionals focus on advising and implementing risk management solutions for Wellington and York Partners' institutional client base.

Highlights

  1. Customization, advice, implementing risk management solutions
  2. Structured products provide exposure to Wellington and York Partners' strongest investment capabilities
  3. Tenured investment team with strong knowledge of financial instruments, markets and products
  4. Strong track record of translating client demand into concrete solutions or products
Active and Aggressive Portfolio

The Active and Aggressive Multi-manager portfolio offers exposure to concentrated stock-picking strategies from multiple managers that can invest in both long and short positions. It offers a mix of high risk investments with high potential reward.

Approach - The process begins by applying a selection of quantitative and qualitative filters to identify models that are suitable for the Active and Aggressive mandate. The models included typically contain only equity securities. Risk-return characteristics such as superior Sharpe ratio, consistent performance and attractive diversification properties are considered to derive the final allocations.

Research - is undertaken to ensure that the final allocations are risk-efficient. The nature of investments made by the Active and Aggressive Multi-manager portfolio are likely to result in higher volatility and drawdown metrics than a broad market index such as the S&P 500. Positions are often concentrated, held for short periods and may include securities undergoing special situations such as turn-around, bankruptcy or other corporate actions.

The Risk Protection - Multi-manager portfolio is made up of 4 to 8 different investment portfolios from different managers. The Multi-manager portfolio will have a minimum allocation of 10% and a maximum allocation of 30% to each of the underlying portfolios.

Each individual manager will maintain their own well-defined set of rules for selling individual positions. Portfolios may be removed from the Multi-manager portfolio if they are not performing as expected in the market environment or if Wellington and York Partners' investment team believes that there is a better replacement manager based on their evaluation processes.

Multi asset funds

  1. Access to a wide range of different asset classes and investment instruments
  2. Wellington and York Partners' Life Cycle Funds are innovative and take interest rate, inflation and currency risk into account
  3. Wellington and York Partners' GTAA offers a very flexible allocation overlay for every portfolio
  4. Wellington and York Partners' Mix Funds encompass the latest developments in professional asset management combined with broad diversification over asset classes and investment styles

Life Cycle Funds

The Wellington and York Partners' Life Cycle Funds are a mix of funds which are highly suitable for capital accumulation towards a set end date (such as retirement). Life-cycle funds are characterized by the gradual reduction of the investment risk as the date approaches on which access to the assets is required.

Wellington and York Partners' Life Cycle Funds allocate a significant portion of their assets towards alternative asset classes, look for diversification within asset classes and explicitly take interest rate, inflation and currency risk into account.