The Swiss headquartered company said its new Dynamic Allocation strategy aims to provide investors with long term capital appreciation and protection against market losses through what it describes as its “reactivity and flexibility in tactical choices”.
Mirabaud said using “dynamic allocation” allows it to steer away from the reference index and therefore offer lower correlation to traditional financial markets. The process is based on indicators of financial trends, macroeconomic indicators and price indicators.
Explaining the decision behind the launch, Mirabaud said the past two years have demonstrated that the classic investment cycles relied upon for decades are no longer the norm. It added that 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the drop in fixed income yields was also a clear long term trend between 2000 and 2003 and that the risk-free rate has been replaced by rate free-risk and equities are more influenced than ever by political intervention and less influenced than ever by fundamentals.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,” said 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.”
The new strategy is available to all Mirabaud’s clients.
