Saxo Bank has unveiled Balanced Portfolio, an asset allocation strategy that allows traders to follow its progress on the firm’s platform and if desired duplicate the strategy themselves. The Balanced Portfolio is an ETF portfolio designed to collect risk premiums across liquid assets in various economic environments. Balancing the portfolio across different economies and asset classes, and allocating equal risk to each creates a stable performance with less volatility over time when compared to traditional equity-concentrated portfolios.
Saxo Bank built the framework for the new portfolio on the idea of four economic environments: prosperity, inflation, deflation and recession. The asset target weights are calculated by multiplying the economic environment weight with the assets’ weights, which are all set to equal. It consists of seven asset classes (large cap equities, emerging market bonds, commodities, gold, corporate bonds, long-term government bonds and inflation-linked government bonds). These are tracked by seven liquid ETFs traded on US exchanges.
The Balanced Portfolio is based on USD denominated ETFs, but Saxo says that due to large demand from European clients, a EUR denominated ETFs will be published in June.
TriOptima says it will support data verification and portfolio reconciliation of DTCC’s trade repository data for clients’ OTC derivatives portfolios. TriOptima will be the first portfolio reconciliation provider to receive directly DTCC repository data for this purpose.
Stewart Macbeth, president and CEO of DTCC’s Deriv/Serv subsidiary notes that, where permitted, such service provider linkages can be of great assistance to both regulators and market participants. “Giving our clients’ service providers access to repository data is a way to assist our clients in meeting their regulatory obligations and operational goals efficiently,” he says. ”Open access is a critical goal in the new OTC derivatives landscape, and the TriOptima connection will facilitate portfolio reconciliation for firms.”
Currently TriResolve clients reconcile 7 million transactions on the portfolio reconciliation platform. The firm says data integration with the DTCC’s trade repository will enable triResolve to assist its clients in the verification and reconciliation of transactions submitted to the repository by market participants. It will also enable TriOptima’s clients to leverage triResolve’s resolution workflow to quickly address any identified exceptions.
More than 300 institutions use TriResolve for portfolio reconciliation in their collateral management activities. The service supports the mandatory reconciliation requirements effective July 1, 2013 in the US and September 15, 2013 in the EU. The DTCC trade repository link is the latest integration that TriOptima has established with other market participants including the DTCC Trade Information Warehouse, MarkitServ, SGX, and LCH SwapClear.