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Strategic asset allocation

A key step in delivering the investment outcomes your clients expect is establishing the right mixture of assets for them. To help you do this, we work with leading investment consultancy, Willis Towers Watson, to offer asset allocation models that are updated every quarter.

View the asset allocations broken down by product and risk level.


These model asset allocations:

  • underpin the online tools you can use to construct/rebalance portfolios, as well as being used to determine the asset allocations for our Managed Portfolio Service and Creation funds
  • offer a portfolio of assets that is diversified, balanced and designed to work as a whole
  • use a process called ‘mean variance optimisation’ to produce a portfolio with the highest mathematically expected return for your client’s level of risk
  • are matched to the level of risk appropriate for your client and mapped with an expected portfolio volatility level. To measure risk, we use a method called the standard deviation of investment returns; in other words, how much returns may move up and down relative to their long-term average rate of return
  • are backed by robust, forward looking economic data and take into account a set of assumptions about economic conditions, fund expenses and tax.

Using our adviser tools

When self-building portfolios, our online asset allocation tools also give you the flexibility to alter and adjust the assets within a portfolio. So, if a client wants less exposure to a particular asset class for example, our tools can accommodate this. Following a change to the standard asset allocation the tool can re-optimise the portfolio to ensure that the client’s attitude to risk is still being matched.

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