The research, pulled together by Asset Allocation Intelligence, draws on results published in academic journals, made accessible to the broader investment community through a model launched by Parala Capital, a firm that specialises in macro-economic investment strategies through quantitative methodologies and predictive models.
Parala's asset allocation model forecasts the likelihood of different macro-economic scenarios in the future. It uses this information to choose a mix of asset classes that achieves a target return, while minimising the risk that a shift to a particular macro-economic environment will be harmful to the portfolio return.
A key factor that makes this asset allocation research different from other sources is that macro-economic factors are taken into consideration to identify the relationship between asset classes.
"The Parala investment approach draws on the world class expertise of our academic advisers," said Steven Goldin, managing partner at Parala Capital.
He added that founding partners Professors Allan Timmermann and Russell Wermers have been pioneering academic research into using key macro measures to help pinpoint asset class changes.
“We think that this approach can easily be used by the wealth management community to inform their own work in building more robust portfolios for their clients,” he said.
The resource sections available for subscribers include a diverse range of research from all over the world from numerous sources, including the leading investment banks and academic researchers.
The asset allocation research will be available through the Asset Allocation Intelligence bulletin, which launched recently on 13 January.
