Case Study 1: Cross-Market Asset Allocation for Institutional Investors
A North American pension fund faced significant challenges in 2021:
Amid low interest rates, fixed-income returns plummeted significantly, while heightened global equity market volatility made it difficult for traditional allocation models to balance long-term liabilities and return objectives.
Leveraging the QuantSight AI system, the Aureus Advisors team customized a cross-market multi-asset portfolio:
Increased equity allocations in emerging markets and green energy to enhance long-term growth potential;
Retained core government bonds and select high-grade corporate bonds to maintain stable cash flows;
Implemented a dynamic risk hedging model to mitigate inflation and currency fluctuations.
Ultimately, the fund consistently achieved its target returns over a three-year cycle while substantially reducing volatility and strengthening the pool’s long-term payment capacity.
