# Implied Views

All changes brought to our implied views are expressed in % of a 10% Risk budget measured in terms of an independent Tracking Error (TE) assuming a perfect correlation across assets and therefore only considering standard deviation as an independent measure of risk.

The percentage expressed gives a feel of our confidence in any given position considering that we have a “theoretical” risk deviation budget of 10%. If the percentage comes at say 25%, it means that we are deploying 25% of this theoretical risk budget of 10% on the item listed, resulting into an actual TE risk consumption of .25*10=2.5%. In actual fact, the only binding constraint is set by the “value at risk” consumption at the aggregate portfolio level which for the COP may not exceed that of “balanced portfolio” and for the GT that of a “growth orientated portfolio”.