One important issue that has to be adressed is if the management of the clients assets should be carried out with a Swedish or global mandate, or a combination thereof. Valbay offers both these alternatives.
Through regional allocation, the global stock market offers greater opportunities of reducing and spreading risk but has had a poorer return than the Swedish stockmarket for the past 20 years.
The Swedish stockmarket has during that period had a 250% better return – but at 47% higher rate of risk.
The higher the risk, the more important it gets to limit downturns through active allocation!