At StandardFA, our model portfolios adopt an Alpha Plus Strategy with the objective of enhancing return while managing and mitigating risks. The portfolios aim to target returns relative to their respective benchmarks and our clients’ risk profiles.
In our Alpha Plus Strategy, we actively advise our clients’ asset allocation based on forward looking Strategic Asset Allocation (SAA) and Tactical Asset Allocation (TAA) calls. SAA is a portfolio long-term strategy targeting allocation across asset classes, regions, countries and specific sectors. Due to the differing returns from various targeted assets over time, we help our clients to rebalance to the original allocation level. Nonetheless, SAA does also change over time as clients’ investment objectives, risk profile, and time horizon deviate from the original setting. In layman term, SAA is a “Buy and Hold” strategy, as opposed to TAA which is taking advantage of short-term market trends, momentums, and anomalies.
In order to create Alpha, we believe in diversifications to reduce risk and enhance overall portfolio returns. In short, SAA & TAA are key elements to a structured portfolio from construction stage to testing and implementation.
Concurrently, we always recommend our clients to review and rebalance their portfolio annually or when there are very significant market movements.