Investment strategy D&AA
If you would like to steer the asset allocation of your portfolio according to your own particular objectives, Societe Generale’s financial engineers have, alongside private bankers, created a dynamic reallocation method.
Exclusive to Societe Generale Private Banking’s clients, the Dialogue and Asset Allocation tool analyses past market behaviour and illustrates potential future returns. A report is generated that clearly sets out the characteristics of your portfolio and enables you to consider the potential benefits, or drawbacks, of different investment scenarios.
Thousands of possible scenarios
The Dialogue and Asset Allocation method provides a thorough overview of your investments. It focuses on the main asset classes and their behaviour which have been analysed over a long period of time covering several market cycles and then modeled accordingly to simulate their possible future evolutions.
The D&AA method makes it possible to generate thousands of possible scenarios for each asset class.
Analysis of your portfolio
Firstly,a diagnosis of your portfolio is carried out in order to assess its risk exposure and performance potential.
The D&AA report allows you to understand not only the medium-term (five years) behaviour of your portfolio but also its short-term behaviour (one year). As well as indicating the limits of your portfolio’s evolution given changes in the markets, it will also present you with a scenario in the event of any extreme changes, in order to indicate maximum potential losses.
Asset modeling to inform decision-making
Secondly, should you envisage making a change to your portfolio:
- The D&AA method can create simulations by changing your current asset allocation or integrating new assets
- Then, based on their impact, you may choose the strategy you believe to be most appropriate.
These simulations are an excellent opportunity for you to consider possible adjustments to your portfolio, select new investments, or even to simply analyse your global wealth.