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. Financial research has shown that diversification increases risk-adjusted returns. Our GAA portfolios allocate across the six major asset classes to improve diversification relative to the typical equity-and-bond portfolio. Innealta’s quantitative framework incorporates variables relevant to each sector and sub-sector within a given asset class, providing insight to the Investment Committee on relationships between and within asset classes, as well as the reward-to-risk profile.
Six Portfolios Across Three Risk Levels
The strategy is executed along three risk-preference levels, each of which offers two portfolios: Global All Asset and Global All Asset Opportunity. Global All Asset: the strategy is executed using non-leveraged ETFs. Global All Asset Opportunity: the strategy utilizes leveraged ETFs to obtain exposure 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.