Global Alpha Total Return Strategy (TRS)
The discipline of a 60/40 portfolio, informed by forward-looking capital market assumptions.
Benchmark: Bloomberg Global 60/40 Index
Model
Forward-looking assumptions
We do not simply extrapolate the past. Equity return expectations are built from a supply-side, building-block framework that decomposes returns into economic and corporate fundamentals; fixed income expectations are derived from cash rates, inflation and credit spreads.
Universe
Global multi-asset universe
Equities across the US, Asia ex-Japan, Japan and Europe; investment-grade bonds in the US and internationally; plus gold and cash.
Selection
Institutional-grade screening
ETF exposures are screened with reference to the Morningstar Medalist Rating — a forward-looking assessment of each vehicle’s ability to deliver alpha relative to its category benchmark, net of fees.
Investment process
From assumptions to portfolio
Every TRS allocation follows the same disciplined sequence — from the client’s objectives to a portfolio that is monitored and rebalanced over time.
Inputs
Client objectives, horizon and risk tolerance, alongside market information and transaction costs.
Capital market assumptions
Forward-looking, 20-year estimates of return, volatility and correlation for each asset class.
Strategic allocation
A 60/40 equity–bond anchor constructed from those assumptions.
ETF selection
Exposures screened with reference to the Morningstar Medalist Rating.
Monitor & rebalance
Exposures adjusted within the strategic framework as markets deviate from the base case.
Building blocks
How we estimate long-term returns
Rather than extrapolating past performance, we decompose expected returns into the economic and corporate drivers that generate them.
Equities
Fixed income
Framework first proposed by Diermeier, Ibbotson and Siegel (1984) and later adapted to equity markets by Ibbotson and Chen (2003). Illustrative of the methodology only; not a forecast of any specific return.
Dynamic allocation
A strategic anchor, adjusted with discipline
Capital market assumptions describe expected returns over the next 20 years under a base-case scenario. Volatility and correlation assumptions are not taken from history alone; they also reflect the common market and economic factors that drive asset returns and the relationships between them.
Over shorter horizons, markets can deviate materially from the base case. A dynamic asset allocation process responds to these deviations, adjusting exposures within the strategic framework rather than abandoning it.
Next strategy
Global Alpha Quantitative Strategy (QIS) →
Key risk considerations
- Target returns and drawdown objectives may not be achieved. The value of investments can fall as well as rise, and investors may lose some or all of their capital.
- Derivative and options strategies involve leverage, liquidity and counterparty risk, and losses may be magnified in volatile markets.
- Quantitative models rely on assumptions and historical relationships that may not hold in future market conditions.
- Actively Managed Certificates are subject to the credit risk of the issuer.
- Investments in foreign markets are subject to currency, political, regulatory and liquidity risks.
- Allocations are managed dynamically and may differ from those described on this page.
Important Information
This page is prepared by Sino Suisse Capital Pte. Ltd. (“SSCPL”), a holder of a Capital Markets Services licence regulated by the Monetary Authority of Singapore. It is intended for institutional investors and accredited investors only, as defined under the Securities and Futures Act 2001 of Singapore, and is not directed at any person in any jurisdiction where its distribution or use would be contrary to law or regulation. It is provided for general information only, does not take into account the investment objectives, financial situation or particular needs of any person, and does not constitute investment, legal or tax advice, or an offer, solicitation or invitation to buy or sell any product or service. Targets and objectives are not guarantees and actual results may differ materially. Past performance is not indicative of future results. Information obtained from third parties has not been independently verified. SSCPL makes no representation or warranty as to the accuracy, timeliness or completeness of this information. This page has not been reviewed by the Monetary Authority of Singapore.