Asset Allocation

The asset allocation of an investment portfolio is the mix of investment types (or asset classes, such as stocks or bonds) that provides the optimal balance of (i) higher investment returns and (ii) low variations in investment returns given the client’s investment goals and financial circumstances.

The asset allocation is part of the written investment policy and is approved by the governing board, council or investment committee.

Tallsalt combines extensive research of the historical performance of various asset classes with technical expertise and experience to develop a customized model portfolio or Strategic Asset Allocation.

Asset types or classes considered for inclusion in the investment portfolio may include, among others:

• Government securities
• Corporate bonds and asset-backed securities
• Small, mid, and large-capitalization stocks
• Domestic and international securities
• Alternative classes: Real estate, hedge funds, commodities

Our process considers many factors including historical asset class performance, volatility of asset prices and investment returns, correlations to other asset classes, interest rates, inflation, economic growth rates, taxation and government policies, among others.