Mirabaud launches multi-asset strategy Dynamic Allocation
Mirabaud Asset Management has appointed Pierre Pinel as chief investment officer for asset allocation products and balanced mandates to manage a new multi-asset strategy, “Dynamic Allocation”.
The strategy will offer flexible management on all traditional asset classes and aims for long term capital appreciation and protection in case of market losses through its reactivity and flexibility in tactical choices.
The past two years have demonstrated that the classic investment cycles relied upon for decades are no longer the norm. Buying equities between 2003 and 2007 was a benign act and the drop in fixed income yields was also a clear long term trend between 2000 and 2003. The risk-free rate has been replaced by rate free-risk and equities are more influenced than ever by political intervention and less influenced than ever by fundamentals.
"Today things are more complex,” says Pinel. “Markets tend to move fast in shorter cycles and often finish at the same level they started at but with highly volatile periods in between. A passive approach will ultimately result in disappointing returns. The goal of any dynamic multi-asset portfolio today is to capture these intermediate trends in order to compound returns."
“Asset allocation is at the heart of Mirabaud’s activity and the team is already managing assets for institutional and private clients, both Swiss and international,” says Lionel Aeschlimann, a partner of Mirabaud and head of asset management.
A dynamic asset allocation gives the flexibility to steer away from the reference index and thus offer lower correlation to traditional financial markets. The process is based on indicators of financial trends, macroeconomic indicators and price indicators. An appropriate dynamic and flexible allocation enables opportunistic investments in the most attractive asset classes and quick decisions when unanticipated events occur.
The portfolio will invest primarily in liquid and transparent vehicles. The specificity of this approach lies in the close integration of macro and quantitative specialists within the investment team as a good understanding of central bank policies and their language are essential to the success of any multi asset portfolio.
In the course of his career, Pinel has assumed key responsibilities and dealt with numerous areas of activity in the Swiss and international world of finance, encompassing asset management, investment and also product development and management.
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