Asset Allocation Model

• Seeks to estimate future market movement
  • Tracks various parameters to be used as lead indicators
    E.g. factors denoting liquidity, economic growth, volatility, risk spread etc
  • Also accounts for qualitative macroeconomic factors
• Quantitative model’s outputs ratified by highly qualified Investment Committee
  • Takes into account unforeseen non-quantifiable events
• Combination of parameters indicate future course of capital markets
  • Combination of high liquidity, high volatility, high risk spread, etc could denote imminent fall in markets
  • Combination of low risk spread, low equity risk premium, etc could denote imminent upswing in the markets
• Proprietary Lead Indicator Model
  • Indicates phase in the economic cycle through Overweight, Neutral, and Underweight Bands
  • Call to be taken as per the phase in economic cycle indicated

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