Whether we are managing the assets of Equitable Life or the
assets of our policyholders, the Asset Management Group's
investment philosophy is driven by an understanding and
appreciation of the value that comes from employing a diverse set
of asset classes.
As multi-asset managers, we believe that the key to the
investment process lies within the asset mix decision. A
disciplined approach to determining appropriate asset allocations
within a defined investment opportunity set is paramount to
exploiting relative value between investment classes and achieving
optimal risk-adjusted returns.
We determine asset class allocations using a top-down approach.
This process is characterized by a balance of techniques, beginning
with long-term fundamental perspectives, enhanced by quantitative
and technical applications for validation and additional insight.
Appreciating that additional return is not achieved without cost,
we also focus on risk compensation. As a result, meaningful
allocations are made at times when compensation is largest and
reduced as returns are viewed to be less commensurate with the
Investment strategy committee
The Investment Strategy Committee is comprised of all members of
Equitable Asset Management Group. The Committee meets weekly to
discuss economic and financial market developments, and to
establish asset class positioning biases to guide the overall
allocation of our balanced mandates. Macro economic conditions set
the backdrop against which functional managers for each asset class
apply fundamental, quantitative and technical observations to
determine the relative attractiveness of each asset class and,
ultimately, the optimal portfolio weighting.