The Essence of Asset Allocation at Mackenzie
Portfolio Manager Alain Bergeron of the Mackenzie Multi-Asset Strategies Team explains the importance of risk budgeting, currency management, and pension experience in delivering best-in-class portfolios.
ALAIN BERGERON: So what makes the Mackenzie asset allocation approach unique starts with the composition of the team. Not only is there a dedicated team that focuses on asset allocation, but several of us are coming from large, sophisticated, internationally recognized pension plans.
And that manifests itself in a lot of very deliberate processes that each individual—each and(?) individual of these processes had the expected return or reduce the risk. Eliminate risk wastage, deliver a portfolio that evolves within the parameter that people would expect, and in the long term you expect would outperform.
And you can only have that conviction to be successful in doing that if you put all these processes.
Examples, risk budgeting. Critical tool in large pension. It's at the essence of all that we do here in our asset allocation.
Example, currency management. Looking at it, at the total portfolio. Much better than if you actually do it individually in each of these mandates, that may not actually sum up to the right thing.
Example, radars and tools. In 2018, it's so important. The world is complex. Very critical to have the technology to help identify I would say (inaudible) the opportunities as well as the risk that may be in the portfolio.
Many example like that, ultimately that's what, if you put it together, that was what makes the asset allocation unique at Mackenzie.