What is it?
Our asset allocation process is where we recommend which assets we believe you should invest in depending on your personal needs and your attitude to risk. As no one single asset class will perform consistently, we will provide strategic and tactical guidance at regular review meetings.
How does it work?
- We analyse and scrutinise market data to help make accurate predictions on future market outcomes.
- We consult with our extensive list of professional contacts to help determine what the future might hold for the markets.
- Your individual financial needs and risk profile, along with a detailed breakdown of your assets and liabilities, can enable us to build you a tailored investment strategy for the long-term.
What if my needs and risk profile change?
If your financial needs and attitude to risk changes, we will advise you on any changes we feel should be made to your portfolio. This will ensure that you are invested in the correct asset classes - balancing your exposure to higher and lower risk assets in accordance with your risk profile.
To see the Cazenove Capital Management research on optimal Asset Allocation, please download the following PDF file: Strategic Asset Allocation.
Preparing for opportunities ahead…
Recent market action has once again highlighted the critical importance of diversification – investing in truly uncorrelated or negatively correlated areas. Merely assuming that a spread of asset classes provides diversification can catch investors out, particularly in periods of stress when correlations between many asset classes rise toward one.
We suspect that the last couple of weeks have provided a short term trading opportunity for those with cash to invest as markets fall. However, the continuing deterioration of economic data and the diminishing impact that governments and central banks can exert over markets, suggests that we may yet see a more opportune entry point. Yes, there are pockets of value in selective areas that now look oversold, but continued caution at this stage feels prudent and allows us to prepare for more attractive opportunities in the coming weeks and months.
To see the latest Asset Allocation Dashboard, which has been provided by Cazenove Capital Management, please download the following document: Cazenove Asset Allocation Dashboard (Feb 2012)
