FSF News

UK inflation rate drops back to 3% The rate fell from November's six-year high of 3.1% mainly because of the impact of air ... Read more...

House prices: Midlands sees biggest rises The region saw the biggest price growth in the year to November, with London recording t... Read more...

Male work patterns see big shift to part-time roles, study says A big rise in men working part time is coupled with a fall in the number of middle earne... Read more...

Chile complains of World Bank unfair treatment The World Bank has ordered an enquiry into the ranking it gave Chile for competitiveness... Read more...

Sadiq Khan warns of Brexit 'lost decade' The London mayor says a hard Brexit could cost the UK 500,000 jobs and £50bn in lost in... Read more...

Plastic fantastic: How it changed the world Many things that we take for granted depend on plastic, but will consumers help reduce p... Read more...

Oil prices rise to hit four-year high of $70 a barrel Brent crude rose after Opec promised to keep a lid on crude production during 2018.... Read more...

Asset allocation

The importance of asset allocation (the distribution of UK equities, North American equities, European equities, Far Eastern equities, Japanese equities, emerging markets equities, UK fixed interest, overseas fixed interest, commodities, hedge funds and cash) was first highlighted by the academic, Gary Brinson in 1986 who concluded that as much as 90% of a portfolio’s long term performance is down to asset allocation.

By studying the relationships between the various asset classes one can build a portfolio that smoothes out market volatility and should, within various risk categories, provide the greatest returns for the least risk. Adherence to ‘efficient models’ is very much part of modern portfolio theory and integral to our investment process.