Guy Stephens: Having your investment cake

Asset allocation is key

clock • 7 min read

Advisers and their clients need to look beyond geopolitics or collective fund exposure, writes Guy Stephens, and focus instead on careful asset allocation with a long-term view

There are two parts to any investment strategy, the long-term strategic positioning of a portfolio in pursuit of long-run objectives and the short-term tactical positioning, which tries to navigate the here and now. At Rowan Dartington, we espouse a wedding cake analogy, whereby 90% of our portfolio strategy is determined by the ‘fruit' part of the cake, or the asset allocation. This is why we meet and deliberate on a bi-monthly basis to make occasional changes to remain focused on the long term. The remaining 10% of the cake is split equally between the ‘marzipan layer' of geographic po...

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