Asset Allocation

Asset Allocation is the balance of investments in a portfolio. Getting the investment mix right is crucial for people of all ages and wealth levels if they are to achieve their long-term financial objectives. There are four main factors that commonly determine the investment decisions people make:

Asset Types - What type of investments do I feel most comfortable with?

Stock Selection - There are plenty of shares to choose from, but how to select good ones, what if I do not feel comfortable with shares at all and would like to take less risk?

Timing - When to invest? When the market is picking up or when it is falling?

Charges - A special offer on a lump sum investment or a short-term fund discount can make an investment appear particularly attractive. But what if charges I'm paying are so high that they are outstripping any returns?

Portfolio Building and Stochastic Planning

At Staffordshire Independent we have access to one of the most sophisticated asset allocation tools that helps to produce asset allocation recommendations to meet your investment objectives.

The tool incorporates risk profiling, asset allocation and portfolio construction into a single, seamless process. At the heart of the tool is a stochastic model which simulates future investment returns.

At Staffordshire Independent we have access to one of the most sophisticated asset allocation tools that helps to produce asset allocation recommendations to meet your investment objectives. The tool incorporates , and into a single, seamless process. At the heart of the tool is a which simulates future investment returns.

Instead of relying purely on historic investment returns, the forecasts are calculated using a stochastic investment model. Stochastic models are generally considered more reliable than historic returns alone as they explicitly allow for:

  • Economic drivers underlying investment returns, such as inflation or economic growth
  • Day to day variability inherent in investment returns and equity market shocks

Stochastic models project hundreds of different possible future investment scenarios to give a better indication of the level and spread of future returns.

The output is a detailed and objective Investment Plan, tailored to meet your goals. For more information or to make a no obligation appointment with one of our investment advisers please ring us free on 0800 389 2276 or email us on advice@staffordshireindependent.co.uk. 

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