Asset allocation is an investment strategy that aims to balance risk and reward.
It does this by considering your time horizon and risk tolerance and apportioning a portfolio's assets to specific classes of assets in order to meet financial planning goals, objectives and needs.
By creating asset allocations designed to each investor's needs, we don't fit investors into a catch-all allocations that could be inappropriate for them.
Instead, we start from the basis that every investor is unique and different, so their investment portfolios should reflect this.
Strategic Asset Allocation: A long range plan for a portfolio that takes into consideration overall long-term goals, objectives and needs.
We typically only make alterations to the strategic allocation as circumstances evolve, time horizons change and goals, objectives and needs change.
Tactical Asset Allocation: In contrast to strategic allocation, tactical asset allocation attempts to capitalize on changing market conditions.
The overall asset allocation will be changed frequently in the short term, but the overall strategic asset allocation isn't abandoned from a longer term perspective.
For investors looking to take advantage of specific market conditions, we construct portfolios that can accomodate these situations through over-weighting or under-weighting specific securities in the portfolios.
The goal is to capitalize on short term trends and generate extra return or limit shorter term loss.
We do this by creating a globally diversified portfolio using equities, fixed income, alternative assets (such as REITs and Commodities), cash and cash equivalents.
We rebalance as a portfolio deviates away from the asset allocations and employ other techniques like dollar cost averaging and asset location to enhance overall portfolio performance.