Strategic asset allocation

FINFOX Pro offers various options for defining the asset allocation for a given client:

• By adopting a template strategy previously determined by the bank, which matches the risk profile of the investor in question
• By individually determining the asset allocation in accordance with the wishes of the investor
• As a result of an ALM process which uses as inputs the current portfolio, future income and planned expenditure together with the investor’s appetite for risk. This process also uses market information on low-risk interest rates (interest rate structure) together with the return and risk characteristics of the other asset classes.

One strategic and one tactical asset allocation can be used and monitored for client groups or individual clients.

At the asset class level, various simulations can be carried out such as simple simulations, scenario analyses, back testing and stress tests.

In all instances the bank can freely define the asset schemas, reference currencies and estimated values to be used for return and risk characteristics.