At a time when traditional asset allocation benchmarks are shifting and investors are seeking a new balance between safety and performance, we spoke with Philippe Isnard, Partner at Aella Conseil.
His background as a former CFO, enriched by experience in auditing and public accounting, informs a rigorous approach: anticipating market cycles, structuring uncorrelated portfolios, and rigorously analyzing markets in an environment that has become persistently volatile.
In a volatile environment, how do you adjust your asset allocations to protect and grow your clients’ wealth?
Today, asset allocation must meet two requirements: protecting portfolios against shocks and capturing sources of performance that are less dependent on traditional markets. This requires a more technical approach: part of the portfolio remains anchored in stable assets, while another part relies on so-called “alternative” investments, which react differently to market cycles.
This allocation strategy helps cushion volatility while maintaining performance momentum in an environment that has become less predictable.
Which asset classes best reflect your core convictions today (real estate, private equity, bonds, structured products, etc.)?
Our convictions lean toward a broader diversification than traditional approaches. This includes alternative investments, private equity—particularly in real estate—as well as certain opportunistic strategies capable of providing complementary sources of performance.
The idea is not to pit these asset classes against traditional markets, but to build more robust portfolios that are less sensitive to economic headwinds.
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Is it still possible to reconcile security, liquidity, and performance within a single wealth management strategy?
Yes, but this requires rethinking how a portfolio is constructed. No single investment vehicle can, on its own, meet all three of these requirements. However, an allocation that combines a secure, managed core with complementary performance drivers—whether from alternatives or less-correlated assets—allows for a balance between these objectives.
This mix stabilizes the portfolio while capturing performance drivers inaccessible to traditional strategies. Thus, it is possible to develop risk-3 portfolios expected to deliver annual returns exceeding 6% per year over an 8-year investment horizon.
