Create portfolio that can meet client expectations in various economic and market environments.
The process of asset allocation provides a disciplined approach to constructing portfolios that maximizes return for a given level of risk.
The expectation is that by combining several asset classes, the resulting portfolio may experience more consistent returns with less volatility than a single investment
✓ Long term approach to diversification
✓ Fundamental framework for portfolio construction
Strategic asset allocation
Establishes target allocations for each asset class and invest styles based on longer term capital market return assumptions and your risk profile
Active Asset Allocation
Involves the overweighting and underweighting of certain asset classes from their strategic positions as shorter term opportunities present themselves in the market