Asset Allocation
The allocation of assets is at the centre of the OFI AM management process.

This cross-disciplinary domain represents a synthesis of OFI AM's know-how, our vision of the global development of financial markets and our strategy for selecting alpha-generating asset classes.

Serving as a point of reference for all members of our management teams, these recommendations are communicated to our clients on a regular basis, either directly or via our weekly and monthly newsletters.



Asset allocation philosophy
Our asset allocation is reviewed quarterly by a “management committee” regrouping all heads of OFI AM's operational entities. Adjustments are made based on the recommendations of our teams specialising in equity, fixed-income, alternative and multi-management investments, in relation to global economic scenarios produced by market economists.

The resulting asset allocation is involved, in particular, in the development of multi-management solutions and portfolios for OFI Mandats' institutional clients.


Management Report:
Global economic growth, fuelled by the performance of emerging economies, was strong for the fourth consecutive year in 2006. So far, 2007 seems to paint a less rosy picture, with alpha sources less easy to find.

We continue to give preference to large caps, and with regard to international diversification, we overweight American equities, whose upside potential is greater in our opinion.

We still think that the euro is largely overvalued in fundamental terms in relation to other currencies, and particularly the US dollar, although any strong sign of trend reversal has yet to appear.
Expertise
Monitoring of global financial markets Fundamental macro-economic analysis Micro-economic analysis
Statistical analysis
Information
Head : Jean-Marie Mercadal
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