Introduction and aims

Value trap or a value opportunity?

This question has come to the fore as the swirling clouds of geopolitical events have elevated the role of dynamic asset allocation (DAA). They have challenged the timehonoured primacy of strategic asset allocation (SAA), with fixed weights for different asset classes with long-term return targets. This rigid set-it/forget-it approach worked well in the longest bull run after the 2008 global financial crisis. 

Since 2022, however, concerted steep rises in interest rates by key central banks to curb the inflation spike have ushered in a new era of volatility. The mispricing of assets is widespread, leaving investors a choice in this new regime: adjust the asset mix as markets rise and fall, or leave potentially good returns on the table, duly taking into account the downsides of DAA.

You can now read the full whitepaper at the link below