How We Can Help

We believe that asset allocation is the foundation of investment advice, as it is crucial in keeping your investments in line with your risk-return expectations. We aim to help you achieve your investment potential, making the most of your investment returns while taking into account your attitude to investment risk. We do this by focusing on asset allocation, investment selection and risk management across all the products in your portfolio. Asset allocation is about creating an overall portfolio that is right for you and has the most effective combination of investments from the various asset classes available.

Research has highlighted the importance of asset allocation and shown that more than 90 percent of investment returns are determined by effective asset allocation.

Yet it is easy to go off track. For example, after careful consideration and taking into account your risk tolerance, time horizon and financial goals, we may decide that your portfolio should look like pie chart A.

However, as different asset classes produce different rates of return, the percentage of your money invested in each asset class (as a portion of the overall value of your portfolio) will change over time.

This may ultimately leave you exposed to more risk than you want or expect.

If some of the investments in your portfolio were to perform particularly well compared to others, before you know it your effective asset allocation may have changed to something more like pie chart B.

It could be tempting to leave the portfolio, alone at this point. But the purpose of establishing an appropriate asset allocation is to achieve the best return with an acceptable level of risk. Doing nothing breaks this rule and may expose you to a level of risk that you simply dont want to take.