or Active Asset Allocation?... Your Choice
Passive Asset Allocation or a
buy and hold strategy means that the portfolio is designed to hold on to
the original investments. Academic
research shows that mutual funds and pooled-funds often fail to outperform a
simple buy and hold strategy on a risk-adjusted basis.
Studies have shown that Asset Allocation decision explains over 85% of
requested, Japa International will manage the funds according to your
preferred approach. With Constant
Mix Strategies (proportion, beta, components,
indexes), rebalancing is done to
maintain original condition. With Constant
Proportion Portfolio (same % investment in each
asset or securities), rebalancing is done to maintain original condition.
Active Asset Allocation strategy is one in
which the composition of the portfolio is dynamic or tactical.
The portfolio manager periodically changes the portfolio components or
the components’ proportion within the portfolio in order to maximize return
and or minimize risk.
research has shown that an active dynamic or tactical portfolio management
strategy can provide superior performance to a passive asset allocation.
of the Assets
portfolio protection strategy involves adding
components to a portfolio in order to establish a floor value for the portfolio
using equity, stock index, put options, future contracts and dynamic hedging.
portfolio protection strategy is particularly attractive to clients holding
specific securities and seeking particular partial or total protection.
derivative instruments are used to hedge a position (as opposed to using
derivatives instruments to speculate).
Portfolio Management Alternatives
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