The final judgment is reserved for the tilting of the selection
to conform to client risk and return criteria. The first step in
developing a client mandate is to conduct a review of the asset
consulting approach of Asset Allocation Consultants Limited (AAC),
as well as its principles and practices. This includes the important
elements of the Investor's nature, purpose and economic sensitivities.
An example of two fundamental investment objectives
may be defined as follows:
Strategic considerations to be operative in the asset allocation
planning process arising from the stated objectives are:
- Ensure both offensive and defensive
- Minimize drawdowns in degree and duration.
The Chart below provides a visual perspective
of each Combination's capacity to achieve the particular client's