risks.

The following risks may be materially relevant but may not always be adequately captured by the summary risk indicator and may cause additional loss: Counterparty risk, Risks linked to the use of derivatives and financial techniques and Model risk.

All Roads Strategies

Engineering smooth investment journeys

 

All Roads is our flagship, multi-asset franchise that seeks to deliver smooth investment journeys: robust, stable returns and the management of downside risks throughout all market environments. Flexibility is at the heart of All Roads and its risk-based approach can be adapted to suit various risk appetites. 

Source: LOIM. Past performance is not a guarantee of future results. Capital protection is a portfolio construction goal and cannot be guaranteed. Performance/data (as applicable) of LO Funds –All Roads Class EUR NA, net of all fees and expenses. Cash index: €STR. Capital protection/Capital preservation represents a portfolio construction goal and cannot be guaranteed. Target performance/risk represents a portfolio construction goal. It does not represent past performance/risk and may not be representative of actual future performance/risk. Strategy inception: 24 January 2012.

purpose-built investment vehicle.

For us, diversification means investing across different risk exposures. 

In practice, this involves analysing, understanding and investing in a variety of risk premia to meet defined risk targets while remaining focused on capital preservation. This may not always deliver the best portfolio for a given environment but instead focuses on smoothing the investment journey over the long term, and throughout different market and economic cycles.

To achieve this outcome, we have designed a purpose-built investment vehicle with key qualities:

  • An endurance engine that is also capable of sharp acceleration
  • Responsive steering for all-weather control
  • Dependable braking to avoid hazards
  • Shock-absorbing suspension to compensate for unforeseen obstacles

robust engine, responsive controls.

Our portfolio engine is our strategic asset allocation (SAA) and dynamic overlays. 

The SAA is designed to perform in the three macroeconomic regimes that have been dominant throughout history – expanding growth, declining growth and inflationary shocks – by ensuring consistent, fully liquid exposure to assets suited to these scenarios. This broad toolkit of assets includes developed- and emerging-market equities and sovereign fixed income, inflation-linked bonds, credit and commodities.

Our tactical overlays aim to provide the acceleration needed to respond to short-term shifts in the landscape. Trend-following and carry strategies, based on changes in price indicators, and a Macro Risk Premia (MRP) overlay, which draws on data for growth, inflation and monetary-policy surprises, enable rapid portfolio responses. Based on different market and macro signals respectively, they offer further diversification.

clean braking, soft suspension.

To go the distance, managing risk is essential. Winning is mainly about not losing. Avoiding or minimising exposure to market drawdowns not only improves risk-adjusted returns and can also be more important than picking winners in the long run. 

Our dynamic drawdown management (DDM) methodology is core to our way of risk-based investing. It aims to minimise the impact of market drawdowns while remaining as diversified as possible, meaning we actively manage the total exposure of the portfolio and may, at times, allocate meaningfully to the only certain safe haven: cash. 

By dynamically sizing a portfolio in this way, we aim to preserve capital, stay true to the prescribed risk target, maintain diversification and reduce volatility.

Reliable braking: adaptive risk allocation in All Roads multi-asset strategies
 

Source : LOIM as at February 2023, for Illustrative purpose only. Allocations may change. Capital protection/Capital preservation represents a portfolio construction goal and cannot be guaranteed.

fuelling the drive.

Investment environments are often unpredictable. With change being the only certainty, we don’t forecast the direction of markets or the performance of any asset class but instead prepare for any eventuality through diverse portfolio inputs.

No single asset class consistently drives our returns. Some years, duration leads. In others, equities and alternative risk premia do. Sometimes it is commodities. Of course, performance drivers shift within much shorter timeframes, too. We see this as proof of genuine diversification: if a portfolio consistently has diversified sources of return as an output, this means that its inputs – the risk-premia exposures – were diversified to begin with.

By focusing on risk premia, we believe investors can identify and gain exposure to the next diversifier – whatever it might be – as it comes to the fore. This helps to achieve a smoother return profile during periods of volatility.

The diverse return drivers of All Roads multi-asset strategies

Source : LOIM as at February 2023.Past performance is not guarantee of future results, Holdings and/or allocations are subject to change. Performance attribution in EUR net of fees but excluding other unexplained factors, which include amongst other, FX effects, intraday and trading profit and loss.

responsive steering for all-weather control.

research-driven innovation.

one vehicle, many destinations.

investment team.

LOcom_AuthorsAM-Storno.png

Aurèle Storno, CFA
CIO Multi-Asset
Lead Portfolio Manager

LOcom-AuthorsAM-Forclaz.png
Alain Forclaz, PhD
Deputy CIO Multi-Asset
Portfolio Manager

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Sui Kai Wong
Senior Portfolio Manager

more about our funds.

Past performance is not a guarantee of future results. If the funds are denominated in a currency other than that in which the majority of the investor's assets are held, the investor should be aware that changes in rates of exchange may affect the value of the funds' underlying assets. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

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insights.

How expensive are valuations?
investment viewpoints Institutional
investment viewpoints Institutional Multi-asset Wholesale All roads

How expensive are valuations?

Are equity and bond valuations too expensive? LOIM’s cross-asset valuation metric begs to differ and positions in multi asset for growth opportunities and risk management.

Bullish markets, bearish investors?
investment viewpoints Institutional
investment viewpoints Institutional Multi-asset Wholesale All roads

Bullish markets, bearish investors?

A paradox has arisen: investors are bearish, holding onto cash, while market indicators remain firmly bullish. How should multi-asset investors adapt to this environment?

All roads lead to Japanese equities
investment viewpoints Institutional
investment viewpoints Institutional Multi-asset Wholesale All roads

All roads lead to Japanese equities

Japanese equities have benefitted from the country’s economic response to inflation and merit continued allocation in LOIM’s multi-asset strategies.

Low VIX volatility, long VIX volatility
investment viewpoints Institutional
investment viewpoints Institutional Multi-asset Wholesale All roads

Low VIX volatility, long VIX volatility

The VIX volatility index is at record lows. What short strategies could be in play? Simply put advises caution in multi asset.

Growth or value: which equity style are macro dynamics benefiting most?
investment viewpoints Institutional
investment viewpoints Institutional Multi-asset Wholesale

Growth or value: which equity style are macro dynamics benefiting most?

This week, Simply put considers how the long-term drivers of GDP growth can be relevant to equity performance by style and geography. 

Correlation breakdown? Let’s listen to the data
investment viewpoints Institutional
investment viewpoints Institutional Multi-asset Wholesale

Correlation breakdown? Let’s listen to the data

This week, Simply put uses econometric methods to test whether correlations are breaking down – and assesses the implications for diversification in multi-asset portfolios.

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