WealthBriefing Asset Allocation Intelligence Service Is Launched

Tom Burroughes

3 December 2013

The publisher of this news service is today launching WealthBriefing's Asset Allocation Intelligence (WBAAI), a monthly resource for wealth managers with top-class investment research and an asset allocation framework.

The publication is being launched at a time when wealth advisors, faced by a volatile economic environment, must arguably be more dynamic in how they handle asset allocation to protect their clients’ wealth.

To view the new publication, click here.

Among the services included is risk analysis from Check-Risk.com and asset allocation insights from Parala Capital, a firm providing macro-economic analysis from academics.

To illustrate how the research service has been able to add value for investors, WBAAI has two models: "adventurous growth allocation" and "cautious capital preservation allocation". On the first model, back-testing shows that $100 in 1997 would be worth $894 in 2013, heavily beating the MSCI World Index of developed countries' shares, at $259. As for the second model, $100 in 1997 would be worth $581 in 2013, versus $260 based on the 50/50 MSCI World & Barclays Global Agg measure.

"The conventional debate amongst investment professionals is between short term tactical driven strategies and much longer term strategic asset allocation," WBAAI’s editor David Stevenson, said in a statement about the launch. "But we think this debate rather misses the point. Advisors need to be alert to changing macro-economic signals, if only to avoid rising risk levels and market volatility."

"A sensible dynamic framework doesn't have to be about jumping around constantly between classes like a trader - one can be dynamic by simply watching for proven macro signals and then making slow but noticeable changes to portfolio allocations,” he continued.

“Crucially we're completely independent and don't have any incentive to back one asset class over another. We also don't offer any specific advice about funds or companies as we think that that security or fund selection is the job of the wealth advisor,” Stevenson added.

Co-author of the publication is Steven Goldin, managing partner at Parala Capital. Other experts at Parala Capital are Professor Allan Timmermann and Professor Russell Wermers, both founding partners of that firm.

“Our view is that many wealth advisers and family offices leave their clients too exposed to potentially big changes in risk levels by taking a strategic approach, yet also endanger their client's capital by tactically second guessing market direction,” Goldin said.

Features

Each issue of WBAAI includes:

- Highlighted investment research from around the world, from many different sources including the leading investment banks as well as prominent academic researchers, all in a summary form that is quick and easy to read for the advisor;

- A monthly updated asset allocation matrix and suggested portfolio allocations based on the proprietary Parala forecasting framework - this methodology has been in use since 2005 and has consistently helped produce better risk adjusted returns than a standard benchmark portfolio structure;

- A summary of the very latest risk analysis from consultants at www.check-risk.com, a UK consultancy that provides institutional and pension fund investors with bespoke risk analysis;

"We decided to work with Parala Capital and David Stevenson because we thought their unique approach to providing insights into the very best investment industry research as well as the asset allocation advice, was incredibly useful for our core readership in the wealth community" said Stephen Harris, publisher of WealthBriefing.

"Even if you have your own in-house asset allocation experts, I'd suggest that this entirely independent service - not linked to any product provider or trading service - might be invaluable not just by providing new ideas, but also as a way of stress testing your own models,” Harris said.