Investors exercise strategic asset allocation when selecting portfolio assets according to their –
- risk profile,
- liquidity,
- timeframe and
- other relevant investment considerations, as
set out in their strategic financial plan.
Strategy is King
It is a long-held truism that in any financial context, well-devised strategy will always outperform random decision-making over the longer-term. Experienced, successful investors ensure that their investment strategy is –
- based on current information, and
- reviewed to reflect current needs in their ongoing strategic plan.
They also benefit when they document the planning and the final strategy.
Economic cycles are just that: cycles – they move in waves. Asset classes have their own ‘cycles’ within any economic term, responding to both –
- their investment characteristics, and
- investor attitudes to them at the relevant time.
Investment portfolio advice
Your financial adviser will understand these cycles. They will monitor the strategic asset allocation of your portfolio to gauge its effectiveness in –
- meeting your longer-term financial goals,
- within your investor risk tolerance –
- including the characteristics and risk elements of the assets employed.
A strategy-based portfolio is allocated on the basis of building the asset base that responds best to the longer-term. The success of this approach is realised over the timeframe set when establishing your investment strategy. It will not always outperform on a day-to-day or even quarter-to-quarter basis. Persistence with the strategy should result in the achievement of achieve your financial goals and objectives over the set timeframe.
What to do now?
To have your strategy reviewed by one of our experienced financial planners, arrange an appointment, by –
- phoning our office, on 07-3421 3456; or
- at your convenience, us e the linked Book A Meeting facility.
working to the mantra: ‘we listen, we understand; and we have solutions’, and to seek personalised, professional wealth management advice.
(This post was originally posted by us in February 2010. We occasionally update/ refresh the article, most recently in March 2025.)
