A global religious organisation wanted to provide their investment committee and stakeholders with tactical asset allocation research and a tactical component to be used alongside their strategic asset allocation risk models.

The client also asked if Parala could analyse their actively managed funds and provide a 3-month ahead view of their performance and the key drivers of any change in expectations.

Parala used AlphaPredictor® to deliver the following:

• A monthly tactical asset allocation guidance report for their investment committee and stakeholders covering their eligible investment assets and asset allocation risk profiles
• 3-month ahead forecasts for their investment funds and attribution analysis
• A tactical asset allocation portfolio to help the client and its investors access the tactical asset allocation guidance in an investable format

Value delivered

• Over the 7 years ending December 2024, incorporating tactical asset allocation from AlphaPredictor® improved performance relative the client’s strategic low volatility, balanced and long-term growth risk profiles by 1.0%, 1.5% and 1.9% respectively on an annualized basis
• Since 2016, the tactical asset allocation guidance report powered by AlphaPredictor® remains highly valued by the investment committee and stakeholders to better understand important macroeconomic and market drivers of asset class performance and to guide expectations for their investment allocations