Wealth Management & Financial Planning

Wealth Management & Financial Planning

The term 'Asset Allocation' refers to the mixture of assets and their relative weights.

Here we present different Asset Allocation models in order to illustrate general concepts.

Asset Returns are primarily a function of two variables; Asset Allocation and Leverage. Different Asset Allocations provide different degrees of exposure to to the underlying Risk Factors that are the drivers of long run returns.

Complete Portfolios can be constructed as Capital Gains seeking Portfolios as well as Fixed Income Portfolios or a combination thereof.

We use the term 'Portfolio' to refer to a family's complete holdings; in other words our Net Worth.

  • The Fixed Income approach is implemented through direct ownership of individual bonds which establishes a contractual agreement between the issuer of the bond and the buyer of the bond. This is an under rated, and in our view, under used method. The Fixed Income Approach is not something reserved for old people. It is a great option for all of us that are interested in preserving and building wealth.

Examples of the Capital Gains seeking models are;

  • A Global Market Allocation is the natural starting ‎point for the modern investor. It provides broad Exposure to Global Economic Activity weighted by estimates of global market weights.
  • A Macro Parity Allocation provides broad Exposure to Global Economic Activity weighted by an estimate of Macroeconomic Risk Parity.
  • A Bond Allocation provides broad Exposure to Global Economic Activity ‎with greatly reduced exposure to the Growth Risk Factor and weighted by an estimate of global market weights.
  • A Long Equity Allocation provides Exposure to Global Economic Activity ‎with greatly increased exposure to the Growth Risk Factor and weighted by an estimate of global market weights.
  • An Alternative Allocation provides exposure to Hedge Fund style strategies.