Asset allocation is perhaps the single most important investment decision. It is helpful when diversifying across asset types to understand the characteristics of risk and reward for each style of portfolio and to try to ensure that this reflects the time horizon and attitude to risk of the investor along with how it complements other existing investments.
We believe that the risks of political, economic, social and unforeseen events dictate a strategy which puts safety first and then reduces unpredictable risk through diversification with sound investments with a good and verifiable long term track record.
Our aim is to match the optimal portfolio with each client’s unique requirements and to implement this with demonstrably superior investments.
In broad terms asset allocation for any new investment is determined by the investor’s time horizons, attitude to risk and volatility, and how their existing assets are structured. These can be matched to appropriate asset allocation models which can be seen below;
- Capital Preservation,
- Income,
- Income and Growth,
- Growth,
- Aggressive Growth.
For longer term investors, capital preservation may come at the cost of real decline in value through inflation or devaluation. For shorter term investors, the volatility involved in either aggressive or growth assets would involve excess risk for all but the most speculative.
Finding the right balance for you is one of our prime objectives and will have a fundamental impact on the performance of your portfolio.
