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Platinum Strategies
Constant Mix Strategies
The SHUAA Capital Asset Management Constant-Mix strategy structure provides exposure to baskets of MENA equities, bonds and money market instruments with the added benefit of managing volatility to match the risk profile of the client.
The Constant-Mix structure is rebalanced on a monthly basis such that the allocation to each basket (equities, fixed income, and money market) remains constant according to the risk profile desired by the client: aggressive, balanced or conservative.
The Aggressive Profile will allocate as follows:
- 70 % Equities (+/- 10 %)
- 20 % Fixed Income (+/- 10 %)
- 10 % Money Market (+/- 10 %)
The Balanced Profile will allocate as follows:
- 50 % Equities (+/- 10 %)
- 30 % Fixed Income (+/- 10 %)
- 20 % Money Market (+/- 10 %)
The Conservative Profile will allocate as follows:
- 20 % Equities (+/- 10 %)
- 30 % Fixed Income (+/- 10 %)
- 50 % Money Market (+/- 10 %)
The Dynamic Proportion Portfolio Insurance Strategy (DPPS)
The SHUAA Asset Management Dynamic Proportion Portfolio Insurance Strategy (DPPI) provides exposure to a MENA equity basket with a variable participation factor that adjusts to market conditions. The participation level increases in favourable market conditions and decreases to provide protection from the risk of a drop below a target floor.
The DPPI strategy aims to dynamically shift allocation to a risk-free basket as risk levels exceed predefined thresholds and as the cushion on top of the 80% target floor is diminished.
Allocation to the equity basket is dynamic and capped at 100%, with the remaining portion allocated to a risk-free basket. A risk-adjusted multiplier determines the size of the equity allocation relative to a cushion from a moving floor. The moving floor is calculated as 80% of the highest NAV.