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This model is one of a range of tools available to Trevor Greetham, Head of Multi Asset at RLAM, and is combined with factors relating to Momentum, Sentiment and Seasonality to shape the tactical strategies of Royal London's multi-asset investment solutions.
The Investment Clock basically links the performance of various investments to the different phases of the economic cycle.
Trevor is recognised as the founder of the model we use today and has used this extensively throughout his 22 year career as a means of bringing science to investment decision-making.
Trevor's adaptation of the Investment Clock uses growth and inflation indicators to identify four distinct phases of the cycle. Each phase is then populated with asset classes and sectors that are best suited to that specific phase.
This process relies on a robust and rigorous quantitative analysis but crucially leaves room for good judgement and experience to play a significant part.
Watch Trevor explain the concept and application of the Investment Clock in the video below:
The Governed Portfolios and GRIPs are risk-targeted centralised investment propositions with a strong emphasis on investment governance. The tactical asset allocation of each of these portfolios is delegated to Trevor by the Investment Advisory Committee (IAC).
Trevor applies his multi asset model process to help shape these decisions. The tactical positions are carried out within a risk-controlled framework where any changes need to be with pre-defined risk budgets.
This ensures that whilst we can take advantage of short-term opportunities and add significant value, this is done within a risk-managed environment.
The Investment Clock is just one of a range of tools that makes our tactical strategy more robust and more active based. It also brings an additional layer of expertise and strengthens the investment process of our Governed Range.
Find out where we are on the clock right now. Read Trevor's latest report and watch the latest Investment Clock video.
Our Investment Advisory Committee (IAC) meets every quarter to review our risk-graded Governed Portfolios and fund range. Read the summary notes from their most recent meetings.