The days of aggressive monetary policy are coming to an end and this will see a return to fundamentals for asset prices, argue Thomas Wells and Paul Parascandalo.
Speaking in the above video, the pair, who are co-managers of Aviva Investors' Multi-asset Fund Range, discuss the rise of risk-managed portfolios and how an unconstrained global approach to investing can maximise returns.
Wells says: "At the heart of our investment process is portfolio construction. For that, there are three factors: strategic asset allocation, tactical asset allocation and implementation."
Parascandalo adds that for the strategic asset allocation segment they make use of long-term correlation and volatility assumptions. The team's tactical asset allocation is then formulated from Aviva Investors' house view.
"Implementation is the key to building a robust portfolio" says Parascandalo. "Pre-trade risk, post-trade risk, stress-testing and product analysis are all important components of this rigorous process."
Professional Adviser, in association with Aviva Investors, is hosting the Multi Asset Spotlight channel.
UK now a far less insular country
High or low-risk environment?
Looking to the next generation
In today's connected world, portfolios need to be constructed so they can respond quickly to changing conditions and market opportunities, says Aviva Investors' Thomas Wells