StratValue’s Approach
It builds primarily on the long term risks and rewards of equity and fixed income markets in mature market economies, complemented by low correlation instruments and based on an asset manager’s capability to implement above-average efficient investment processes. StratValue provides clients with its “Dynamic Relative Value and Growth Scoring” Tools and its proprietary “StratValue Scoring” Tool for meaningful and consistent equity market analysis
Long Term Investment Horizon
The longer the time horizon, the lower the equity market short fall risk in comparison with the total return potential of fixed income markets. The application of this principle has a fundamental impact on asset allocation models, ultimately leading to higher total returns at lower opportunity risks than the short-term risk focused Modern Portfolio Theory can achieve based on gradually adding - in the short-term - riskier assets to "risk free" instruments. StratValue oversees the implementation of adequate allocation strategies
Volume Matters
The clients’ risk appetite is usually dealt with by diversifying assets into different classes along mass customized portfolio types. Asset managers often do not consider sufficiently the clients’ asset volume including non-bankable assets, leverage and changing risk appetite over time and/or with increasing asset volume. StratValue helps its clients to consider all wealth aspects and resulting benefits of scale with its Client Profile methodology and Asset Allocator Tool
Avoid Ineffective Allocation Models and Equity Selection Processes
Asset managers eventually try timing risk exposure by applying a tactical overlay to portfolio strategies. The shorter the time horizon to rebalance portfolios according to short-term equity or fixed income market expectations, the more are optimum potential returns put at risk. Their traditional market capitalization based stock selection process also prevents portfolio returns from reaching their full potential. StratValue prevents your asset managers from speculating or “churning”, from ineffective selection processes and provides long-term strategic vision with adequate turnover policies and supervision
