By assembling an appropriate mix of equities, fixed income, cash, and other asset classes, you can potentially enhance your core portfolio’s returns and help manage risk.

Adaptive Valuation Strategies (AVS) is Citi Private Bank’s own distinctive strategic asset allocation methodology, which is built upon key principles from our Investment Philosophy.

AVS’s aim is to maximize your returns given the amount of risk you are willing to take.

Our investment process therefore begins by gaining an understanding of your return goals, risk tolerance, and your liquidity, geographic, and currency preferences.

We then customize a long-term plan – or strategic asset allocation – to pursue your goals.

AVS has five levels of allocation according to how much risk you are willing to take on.

Having established an appropriate long-term plan for you, we make tactical adjustments to it, based on the outlook for the next 12 to 18 months.

We can then implement your allocation by building you a core portfolio, using strategies from our own discretionary managers and third-party managers, as well as capital markets strategies.

The long-term plan we create for you highlights what we believe to be the optimal course for pursuing your investment goals in your core portfolio.

How Adaptive Valuation Strategies work

BUILT ON SOLID INVESTMENT PRINCIPLES

AVS is an objective and systematic methodology for strategic asset allocation.

It is built upon principles established through academic research and proven in practice, and which help form our Investment Philosophy.

These include global multi-asset class diversification, the discipline of regular portfolio rebalancing, and staying fully invested for the long term.

FORWARD-LOOKING RETURNS

AVS estimates annualized returns, called Strategic Return Estimates (SREs), over a ten-year horizon.

SREs are based on valuations and other fundamentals.

When an asset class valuation is expensive or cheap compared to its long-term average, AVS lowers or raises its SRE respectively.

This is because low valuations have tended to give way to high subsequent returns and high valuations to low returns.

A lower SRE will likely lead AVS to recommend a smaller allocation to an asset class, and a higher SRE to a larger allocation.

SPECIALIZED TREATMENT OF RISK

We believe the most meaningful risk for investors is that of an allocation suffering severe losses during a crisis.

Traditional asset allocation methodologies have often failed to anticipate the frequency and severity of such losses.

AVS therefore uses a specialized measure of risk called Extreme Downside Risk (EDR), which draws upon many decades of asset class history to highlight the risks you may face.

There is a close relationship between SREs and EDRs: higher returns come with higher risks attached.

Meet our people

Paisan Limratanamongkol

Head of Strategic Asset Allocation and Quantitative Research
Citi Wealth

Meet our wealth expert

Paisan has overall responsibility for Citi Wealth’s strategic asset allocation.

Before joining the Private Bank in 2013, he was a quantitative equity portfolio manager and researcher at BlackRock. 

Previously, he was a partner at Thunder Bay Capital Management, with responsibility for asset allocation and stock selection. He also worked at Deutsche Asset Management’s Global Research Center, where he helped to develop smart beta strategies.

Paisan holds a bachelor’s in computer engineering from Chulalongkorn University, Thailand, an MBA from Thammasat University, and a PhD with a concentration in Finance from the Kenan-Flagler School, University of North Carolina at Chapel Hill.

OUTLOOK

Investing in 2025

Our views on portfolios for next year and thereafter

The global economy has “broken the rules” by growing despite usually reliable recession signals.  

We believe this expansion can continue in 2025 and 2026 despite likely geopolitical discord, creating upside potential for financial markets.  

For ultra-high-net-worth individuals and their family offices, we make the case for broadening portfolio horizons: embracing all the asset classes set out in their long-term investment plans. 

Access our insights covering major asset classes and our favored markets, including those impacted by powerful long-term forces such as the artificial intelligence (AI) revolution. 

Global citizens

The Private Bank exists to serve a very special community. Hear the stories of global citizens in their own words.

Contact us

To help put you in touch with the right Private Bank team, please answer the following questions.

Are you an existing Private Bank client?