FSF News

Trump 'ready' to tax all Chinese imports The US president says he is prepared to slap tariffs on all $500bn of imports from China... Read more...

UK government borrowing at 11-year low Public sector borrowing between April and June fell to the lowest level since 2007.... Read more...

Trump criticises US central bank's interest rate rises Mr Trump says he is "not happy" with rising interest rates which he argues put the US at... Read more...

Pound drops below $1.30 as June retail sales fall Sterling falls after figures show shoppers shunned stores to focus on the World Cup last... Read more...

Two former traders jailed in Euribor rate-rigging case Christian Bittar and Philippe Moryoussef are jailed for five and eight years respectivel... Read more...

Summer clothing sales hold back inflation The CPI measure of inflation remained at 2.4% in June, raising uncertainty over an Augus... Read more...

Prices of flats stay unchanged for a year, says ONS Overall houses prices rose by 3% in the year to May, according to the Office for Nationa... 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.