Dynamic Strategic Asset Allocation

Our client wanted to modernise and industrialise their asset allocation approach for funds across their regional investment entities. This meant transitioning from tactical asset allocation bands to a ‘Degree of Freedom’ threshold at the fund level. The engagement’s scope was to establish benchmark dynamic strategic asset allocations for the funds in their biggest regional business units. This would help them better manage the investment risk and return, and create a consistent approach across all their regional entities.

The client engaged Invartis to roll out a Dynamic Strategic Asset Allocation process across all their applicable business units, to ensure seamless integration and consistent application. Invartis was also tasked with developing comprehensive documentation for training and reference, to enable efficient and effective implementation and maintenance of the process.

What we did

For each business unit in the engagement, Invartis:

    • Analysed, designed and developed the asset class and sub-class stratification structure for each fund in line with the region, currency and strategy specifications
    • Analysed, designed and developed an automated process for granular breakdown of current fund holdings as per the asset class stratification
    • Enabled the selection of optimal asset allocations within the investment and regulatory constraints
    • Assessed and documented the business needs for data pipelines, processing, accuracy and scalability, and developed the code for a programming application to perform the data processing steps

Our impact

  • The client was able to seamlessly roll out the Dynamic Strategic Asset Allocation to all the major business units in the client organisation
  • The client leveraged our technical and functional expertise in data and automation to produce a valuable knowledge and code resource. This resource allowed them to streamline the annual asset allocation review and speed up the development of future enhanced data applications

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