Launch of the Active Asset Allocation fund

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Frank Dan Jensen

Partner

We are happy to announce the launch of the Active Asset Allocation fund.

The purpose of the fund is to provide an alternative to traditional 50/50 stock and bond mandates which promise active management at a high fee, but in reality are completely passive and often merely contain more products of the issuer, thus further increasing net cost.

Return target:
4% to 9% p.a. (net of fees) over a 3-5 years investment horizon.

Volatility target:
lower than 8% p.a.

Investment objective:
To provide investors with a broad and well-diversified exposure to global markets in

  • Equities
  • Fixed income
  • Commodities
  • Currencies

A flexible allocation method based on volatilities and correlations

  • Reduces or removes holdings of assets whose volatility is increasing
  • Controls the overall volatility of a portfolio

In principle it can be used on a portfolio composed of any asset type

Based on a simple, but well-known asymmetry:

  • Volatility increases more when an asset is falling than when it increases

We apply the method actively managing a universe of passive ETF’s.