From the classical Top-down approach (equities/bonds/cash, regions/countries/currencies)…
Where tight tracking error constraints with respect to commercial indices lead most traditional active managers to be mostly passive.
… To an approach based on the clear separation between
Beta management:
ensuring that risk and return are optimally balanced in order to achieve clients’ investment goals.
Alpha management:
giving the possibility to generate outperformance within the allocated “Risk Budget“ by taking active investment decisions.
The core –satellite approach