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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read
Five key takeaways from the Spring Statement 2025

Five key takeaways from the Spring Statement 2025

OBR growth, ISA reforms and defence

Sorin Dojan
clock 27 March 2025 • 4 min read
Bank of England halts interest rate cuts amid ongoing inflation

Bank of England halts interest rate cuts amid ongoing inflation

As priced in by markets

Sorin Dojan
clock 20 March 2025 • 2 min read