FSF News

Brexit: Theresa May 'to offer 20bn euros transitional deal' Theresa May is expected to propose a two year transitional period in her big Brexit spee... Read more...

Japan's yen rises after N Korea warning Analysts say the situation would have to be catastrophic for investors to flee the curre... Read more...

Slough named as the 'best place' to work and live The town immortalised by 'The Office' is a "prime spot" for jobs and a good quality of l... Read more...

Government borrowing at lowest August level for 10 years Record VAT receipts for August helped government borrowing to be lower than expected las... Read more...

China's credit rating downgraded by S&P Rating agency Standard & Poor's finds China less credit worthy because of a build up of ... Read more...

Fed to start unwinding bond portfolio The Fed will start to reduce its $4.2trn balance sheet in October.... Read more...

Brexit 'crunch time' for City of London, says group UK firms and the economy as a whole need a Brexit transition period, City lobby group wa... 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.