Asset Classes & Allocation

Asset Classes & Allocation

Understanding the use of different assets classes and the inherent risks involved plays a huge part in the allocation process that seeks to diversify portfolio risk. The risks of a combined group of assets are naturally present due to the variation in asset performance during any given period of time. It is the skill and expertise of your wealth advisor to mitigate the affect that risk may have on the performance of your portfolio through an allocation strategy that seeks to incorporate non-correlating assets as a means to achieving absolute diversification.

Asset Allocation Process

Asset allocation is a distribution process whereby a portfolio is divided into a number of separate asset components. An asset is selected based on its ability to perform under certain market conditions and due to the inherent nature of investment risk and market fluctuations, no one asset class can consistently out-perform other asset classes summoning the need for diversification. The balance of assets is critical to the efficiency of overall portfolio performance and needs to be closely monitored and adapted where necessary as a result movements within the market.

Balance & stability

Through a dedicated research effort and a proactive approach to portfolio management, Morgan Newfield portfolios are constructed and re-balanced in line with your specific objectives and goals. Your portfolio will actively pursue a stable return variability, measured as an indicator between the actual returns received over a specified period in comparison to expectation.