Mirabaud Asset Management has launched a dynamic allocation fund that can shift its asset allocation in response to market movements.
The Mirabaud Dynamic Allocation fund aims to replicate a composite index of one-third exposure to European stocks and two-thirds to investment-grade government bonds.
The fund is managed by a team led by Pierre Pinel, chief investment officer for asset allocation products and balanced mandates. Pinel claims a dynamic strategy will achieve a better return than investments in passive products.
“Today, things are more complex,” he says. “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 focus on asset allocation is in line with a trend for institutional investors in Europe to spend more resources on allocating between asset classes, which some say has come at the expense of manager selection.
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