“Traditional” allocation approaches (Risk Parity\, 60-40\, etc.) have performed remarkably well in the U.S. in both absolute and risk-adjusted terms over the last 30 years. Current levels of 10-yea r yields across developed markets - with the U.S. now joining Europe and J apan – and higher equity valuations will make asset allocation much more c hallenging going forward. In this context\, using liquid derivatives inst ruments to add a carry bias to a simple 60-40 allocation is a solution to capture performance in a wider range of scenarios. LFIS’ C2R (carry to ris k) method allows you to be used to navigate over time across instruments p ricing similar risks. The C2R framework compares carry to risk across vari ous equity and credit instruments and also looks to add other diversifying sources of performance\, beyond interest rate duration. The result is an innovative\, multi-asset allocation with a contrarian approach and limited idiosyncratic risk.
BEGIN:VALARM UID:35666533-6238-4038-a533-633931323738 ACTION:DISPLAY DESCRIPTION:EDOUARD LAURENT-BELLUE - Partner and Head of Fund Solutions\, L FIS\n\n“Traditional” allocation approaches (Risk Parity\, 60-40\, etc.) ha ve performed remarkably well in the U.S. in both absolute and risk-adjuste d terms over the last 30 years. Current levels of 10-year yields across d eveloped markets - with the U.S. now joining Europe and Japan – and higher equity valuations will make asset allocation much more challenging going forward. In this context\, using liquid derivatives instruments to add a carry bias to a simple 60-40 allocation is a solution to capture performan ce in a wider range of scenarios. LFIS’ C2R (carry to risk) method allows you to be used to navigate over time across instruments pricing similar ri sks. The C2R framework compares carry to risk across various equity and cr edit instruments and also looks to add other diversifying sources of perfo rmance\, beyond interest rate duration. The result is an innovative\, mult i-asset allocation with a contrarian approach and limited idiosyncratic ri sk. TRIGGER:-PT15M END:VALARM END:VEVENT END:VCALENDAR