Hot Topic: Asset Allocation

It is a little known fact in the general marketplace that 90% of the returns of a portfolio can be attributable to asset allocation. This is clearly an important point, as it directly affects any investment portfolio whether it be through direct holdings, via a pension or any other investment vehicle, and should be applied holistically to all assets. Asset allocation is at the core of our investment management process and it is therefore essential that your investment objectives and risk profile are reflected in your asset allocation. One key aspect of asset allocation is to include investments that behave differently in different market conditions, otherwise known as assets which have a negative correlation, so that ultimately the returns on your investments are smoothed rather than volatile.