CI’s annual review helps to keep program optimized
CI LifeCycle Portfolios benefit from a comprehensive annual review by CI Multi-Asset Management and SSGA. This provides opportunities to fine-tune the glide path in response to changing valuations, interest rate trends, economic conditions and other factors, and to identify new and evolving ideas, approaches and asset classes that can reduce risk and enhance returns.
The value of forward-looking strategic asset allocations
CI uses a mean-variance optimization framework, based on State Street’s leading asset allocation research, to calculate optimal portfolio mixes. The key inputs in this process are SSGA’s proprietary long-term asset class forecasts for risk, return and correlation. Its risk and correlation estimates rely heavily on analyzing historical data, spanning numerous market environments. Historical findings and relationships are further adjusted for any sustainable changes observed within current market environments in order to establish a forward-looking assessment. These forward-looking total return estimates are generated through a combined assessment of current valuation measures, corporate earnings, economic growth, inflation forecasts, and historical risk premiums for the various asset classes.