Portfolio Construction

 

Portfolio Construction

Portfolio construction starts with the liabilities, and uses the Cameron Hume data analytics tools (CaTo) to accurately match these with a diversified selection of high quality corporate and sovereign bonds.  We apply our credit process which also takes ESG factors into consideration.  We also incorporate other client consideration in portfolio construction such as capital charges required by regulators or measures linked to accounting rules.  A reoccurring problem in ALM is the level of credit risk and varying this to respond to market conditions.  As part of portfolio management we can incorporate client risk and return objectives using our propriety responsive credit allocation.