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Global All Asset


The Global All Asset (GAA) strategies provide exposure across six major assets classes: equity, fixed income sovereign, fixed income credit, commodities, foreign exchange, and real estate. Widening the scope of potential investments provides the opportunity to spread risk across different asset classes and geographies. The Innealta quantitative framework analyzes the variables relevant to each sector and sub-sector within a given asset class, and provides the Investment Committee insight on the various inter-asset relationships, intra-asset relationships, and the reward to risk profile.

Quantitative Framework: Leveraging years of research, our proprietary rules-based framework was initiated in 2005 and continues to parse and systematically analyze hundreds of macroeconomic, corporate, and behavioral variables across many asset classes to forecast asset returns and volatility.

Process: Our quantitative framework informs our process. We apply a repeatable process that merges proprietary forecasts with portfolio optimization, trade cost analysis, and risk monitoring. Compared to baskets of individual securities, exchange-traded funds offer several advantages including transparency, liquidity, and cost efficiency.

Diversification: Financial research has shown that diversification increases risk-adjusted returns. Our Global All Asset Portfolios allocate across the six major asset classes to improve diversification compared to a typical equity and bond portfolio.

Downside Protection: The Global All Asset Portfolio allocates across equity, fixed income sovereign, fixed income credit, foreign exchange, commodity, and real estate markets. This flexibility has historically provided improved capital protection.

Six Portfolios across Three Risk Levels

The Strategy is executed along three risk preference levels, each of which offer two portfolios: ‘Global All Asset’ and ‘Global All Asset Opportunity’.

Global All Asset – Strategy is executed using non-leveraged ETFs.

Global All Asset Opportunity – Unique to our approach, where relevant ETFs are available and appropriate, the strategy utilizes leveraged ETFs to obtain exposures to specific asset classes.* Portfolio collateral ‘freed up’ by the usage of leveraged ETFs is invested in additional exposures that the Investment Committee believes offer superior risk-reward trade-offs.

* Use of leveraged ETFs increases risk to the portfolios. See important information for additional information.

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