From this analysis, they recommend multi currency asset class allocations for each risk level. Then they select individual shares/mutual funds and Exchange traded funds (ETF) to be used in these allocations.
From this process they develop 17 multi currency portfolios ranging from low risk to speculative and with or without US dollar investments.
There are four multi currency asset types, multi currency fixed income, multi currency equities, multi currency alternatives (commodities metals etc) and multi currency cash.
Here for example are JGAM’s latest multi currency portfolio asset allocation breakdowns.
Low Risk Multi Currency Portfolio: Fixed Income 70%, Equities 20%, Alternatives 5%, Cash 5%.
Medium Risk Multi Currency Portfolio: Fixed Income, 40%, Equities 50%, Alternatives 5%, Cash 5%.
High Risk Multi Currency Portfolio: Fixed Income 10%, Equities 80%, Alternatives 5%, Cash 5%.
Speculative Multi Currency Portfolio: Fixed Income 20%, Equities 60%, Alternatives 10%, Cash 10%.
Let’s look at the low risk multi currency portfolio above in more detail.
Normally Jyske would recommend that 80% to 100% of low risk multi currency portfolios are in fixed income. Due to global inflation the managers are currently suggesting a tactical shift to underweight bonds, and overweight alternatives (commodities) and cash.
Then the JGAM managers offer a list of good value shares, bonds, funds and ETFs that investors can choose.
The shares are divided into low, medium and high risk. Here are the low risk equities currently on the share list.
Novartis AG 12.5% 5.5% 4.0%
EDF – Electricite de France 12.5% 5.5% 4.0%
Novo Nordisk 5.5% 4.0%
L’Óreal SA 5.5% 4.0%
Danske Bank 5.5% 4.0%
G4S – Group4Securicor plc 4.0%
Diageo AG 4.0%
You can read JGAM’s the entire multi currency portfolio equity and an extensive multi currency portfolio bond list with our multi currency portfolio course
JGAM is wholly owned by Jyske Bank who specialize in creating multi currency portfolios for their investing customers.
The bank has a history of over 100 years. Jyske is Denmark ’s second largest bank, with 450,000 clients in Denmark and over 30,000 abroad.
Jyske Bank has over 23 billion euros in assets and also happens to be one of the leading currency traders in the world. The Danes have always been big currency traders because as a small naval country surrounded by England , Sweden , Finland , Russia , Germany , Norway and other countries…they have always had to deal in many currencies.
This historically gained expertise means that unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour global currency and commodity dealer service. Many other large banks use Jyske to handle their off hour currency positions. This means that Jyske is huge when it comes to multi currency activity. In fact their turnover reaches $50 billion dollars a day.
You can read JGAM’s entire multi currency portfolio equity and multi currency portfolio bond list with our multi currency portfolio course
Join me with Jyske Global Asset Management in October 2008 at our
Learn here about multi currency water trends