Strategic asset allocation is a highly-disciplined and rational approach to long-term investment, incorporating Nobel Prize-winning ideas about how to achieve success. Strategic asset allocation is a way of organising an investment portfolio in order to obtain the best returns for the least amount of risk – whatever the markets are doing.
Using strategic asset allocation, it is possible to create an investment portfolio that is an exact match for an individual investor’s risk tolerance and investment time-frame. These are the factors that decide the asset allocation goal at inception and on an ongoing basis. Sparinvest’s strategic asset allocation strategy places a deliberate emphasis on the style factors that have been shown to generate excess returns over time.
Sparinvest’s Strategic Asset Allocation investment objectives are:
- To offer continuous investment – regardless of market movements
- To offer well diversified portfolios, invested in a wide range of asset classes
- To use knowledge of asset correlations and volatility to construct portfolios that are suitable for investors’ risk appetites and time horizons
- To emphasize proven outperformance factors (currently size, value and momentum) to seek excess returns
- To retain portfolio allocations through regular rebalancing.
For a more detailed description of Sparinvest’s Strategic Asset Allocation strategy and the academic evidence supporting it, please click here