All our asset allocation solutions are based on three key elements: our convictions, our active and dynamic management, which is based on continuous analysis of market environments, and portfolio diversification. We believe that the optimal allocation of invested capital is achieved by the right combination of these three components.
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”The fact that we can rely on the expertise of Candriam's recognised specialists, in particular our ESG analysis team, is a guarantee of credibility.
All our decisions are based on our fundamental analysis, which we use to define our scenarios and which we complement with quantitative and technical analysis to support our choices. We take particular care to approach the market from different angles, integrating all our expertise.
We take ESG criteria into account at the level of the underlying assets, through strategy selection or through our direct investments, and the type of instruments we favour. This asset mix allows us to tailor our portfolios to the ESG profiles requested by our clients.
Profiled ranges with or without an ESG approach, flexible funds, multi-strategy absolute return funds with or without a systematic approach: the wide variety of our offering means that we can propose investment solutions that are adapted to the demands of our clients in terms of investment horizons, returns and risk profiles.
AuM
complementary sub-teams in an interdisciplinary multi-asset team
years experience in multi-asset investing
asset classes : equities, bonds, currencies, alternative investments, commodities, derivatives
Our philosophy consists of investing in a combination of assets with a dynamic portfolio management approach. This aims to ensure the diversification of the portfolio and our ability to seize the opportunities offered depending on the market environment.
Our investment process is anchored in solid convictions born out of collective discussions. It is based first of all on Candriam's macroeconomic research, for an accurate assessment of the environment. The dual fundamental and quantitative analysis that follows evaluates the expected returns on each asset class, before a behavioural filter integrates the contextual elements that could affect the portfolios. The asset allocation is then optimised according to the return and risk objectives of the strategies. Ultimately, decisions are made collaboratively, at weekly and monthly committee meetings. This investment process, which is systematically applied, enables us to define the best potential portfolios according to our convictions, with a good level of diversification in line with the target risk levels.
Diversification – our ability to access multiple markets and independent sources of return – is our primary objective and driver for risk management. Management bias is an integral part of risk adjustment, so our second driver is portfolio optimisation. The portfolios are optimised by taking into account various risk indicators such as Conditional Value at Risk (CVaR)[1] to limit the maximum potential loss of the portfolio. A stop-loss[2] is set for each transaction. This is an additional way of constantly adjusting risk with rigour and discipline.
Our expertise in asset allocation, our ability to seek out and combine a large number of asset classes, our ESG expertise, our dialogue with experts who specialise in each asset class and geographical area... all of these offer our clients effective strategies that are capable of adapting strategically and tactically to very different market environments.
[1]A CVaR of 5% is the expected return on the portfolio in the 5% worst-case scenarios over a given time horizon.
[2] A stop-loss is the maximum loss accepted on a transaction in the event of an unfavourable trend in the trade and triggers an automatic sell order for the position when the threshold is reached.
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