The goal of Vision’s Global Dynamic Strategy (GDS) is to construct a globally diversified portfolio to meet each client’s suitable level of risk. To accomplish this goal, our investment team deploys an active strategy to optimize risk adjusted returns using a diverse group of global asset classes. Portfolios include up to nine asset classes and can be implemented using ETFs, individual stocks and individual bonds depending on the amount of investable assets and client preference.
The nine asset classes have been chosen due to their historical volatility and correlation characteristics as well as our Team’s confidence in forecasted returns for each asset class. These statistical relationships allow us to alter the investment exposures without changing the level of expected portfolio volatility. Such alterations occur when the return potential for certain asset classes are anticipated to be higher relative to others and/or if certain asset classes temporarily exhibit above normal levels of risk.
Investment exposure in each asset class is an ongoing and active process. Adjustments to the asset allocations are made on a quarterly basis or as dictated by the market environment. The Team routinely forecasts 12 month returns for each asset class while considering changes in dynamics such as interest rates, credit spreads, equity valuations and prospects for economic growth. Using an optimization program results in a set of allocations that we believe will provide the highest return for each incremental level of assumed risk.