Parit Jakhria, Head of Long-Term Investment Strategy (LTIS) at PPMG, explains how his team operates to determine our long-term investment strategy to ultimately deliver outcomes for your clients.
The Long-term Investment Strategy Team determines the optimal strategic asset allocation (SAA) and the strategic hedging policies for Prudential’s multi-asset portfolio. As part of this, LTIS develops its proprietary capital markets assumptions and stochastic asset modelling capabilities to model the risks, returns and correlations between different asset classes, asset sub-classes and macro-economic factors across different geographies over the medium to long-term. Additionally, these assumptions and modelling capabilities are used internally within the Prudential Group by Finance, Risk, Distribution and Product Development.
Of course, it’s important to remember that the value of a client’s investment can go down as well as up and isn’t guaranteed. They could get back less than they paid in. Bearing this in mind, let’s look at our approach to SAA……