The Dynamic Global Diversified (DGD) 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 DGD 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.

The strategy considers investment across all 11 S&P 500 economic sectors, but actual investment always depends on the prospective risk-adjusted rewards. The remainder of the funds is invested in a portfolio of fixed income and other asset classes for which the Investment Committee maintains a more favorable risk-reward outlook.