The Total Portfolio Approach expands SAA by employing dynamic asset allocation

• Factor-based allocation in equities offers exposure to the risk premia that drive returns
• Smaller regional equity allocations provide diversification and exposure to economic dispersion
• Developed Market Government Bonds provide income and reduce the marginal contribution of equity risk
• Hedge Funds provide uncorrelated returns that are aligned to the investment objective

• Cash is the primary benchmark for all investment strategies
  
• Strategic Asset Allocation is the cornerstone of the industry but it has limits
  
• Tactical asset allocation is difficult to time but essential to avoiding major market declines and to take advantage of the opportunities that these events offer
  
• Currency is a risk that needs to be managed
  
• Valuation-based tilting reduces risk
  
• Pay fees for outcomes, not for beta