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Perspectives

Adaptive Valuation Strategies - 2016

By Gregory Van Inwegen & Parul Gupta,

May 11, 2016Posted InPrivate Equity, Commodities, Equities, Cash, Investment Strategy, Investments, Hedge Funds, Fixed Income and Real Estate

by Gregory van Inwegen, Global Head of Quantitative Research and Asset Allocation, Citi Investment Management & Parul Gupta, Global Head of Strategic Asset Allocation

 Strategic asset allocation — creating a long-term investment plan — is one of the most critical challenges that investors face.

Assembling an appropriate mix of equities, fixed income, cash and other investments can potentially enhance portfolio returns and help manage risk. 

Adaptive Valuation Strategies (AVS) is Citi Private Bank’s own strategic asset allocation methodology. It is used to determine a suitable long-term mix of investments — or strategic asset allocation — for each client, based upon the outlook for returns and risks, as well as upon each client’s individual preferences. Its aim is to maximize returns for a particular amount of risk. 

AVS is designed to try and avoid the pitfalls of many traditional methodologies, which failed to estimate the poor returns on equities and were unprepared for the severe sell-offs in risky assets in the decade from 2000.

To read the full report, click here