Asset Allocation Planning

Asset allocation planning

By

Paul Ashworth, Managing Partner
Anne-Marie Tassoni, Partner
Tristan Bowman, Director


Posted 28 January 21

2021 is shaping up to be year of recovery, but is your strategy up to the task?

The case for dynamic asset allocation management

It’s a new year. You’ve bid farewell to the life-altering, chaotic and dare we say it…unprecedented COVID 2020. You’ve once again enjoyed the freedom of being able to socialise over the festive break, reset, recharged and set your goals for a better 2021 and beyond. But what about your wealth goals and purpose moving forward? Is it time to give them a review and reset also?

Importantly, the post-COVID world has significantly altered various economic and financial market factors going forward. Good management and forward planning suggests you reassess these factors against your goals, ensuring a fit-for-purpose asset allocation strategy.

As we outlined in our recent publication, the economic and investment landscape for 2021 and beyond looks different to 2020. This means that how your portfolio was positioned last year, may not necessarily be appropriate to optimise this year of recovery and the challenges that lie ahead.

Asset allocation has been shown to make the most significant impact on a client’s long-term wealth creation, but it can be an overwhelming task to make heads or tails of all the relevant influences, opportunities and risks. Moreover, it requires continuous evaluation with an economically referenced and needs-based overlay in order to realise sustainable long-term real growth within a sound risk management framework.

Our role as advisers is to assist clients through this evaluation process, which is always specific and appropriate to their individual position. Whether that position be straightforward or complex, our experience and knowledge over 40 years helps clients set their clearly defined strategy.

A goal without a plan is just a wish

We have created a strategic asset allocation process that simplifies the complexities of asset allocation. It begins with a plan – a clear, well considered framework of prioritised objectives and resulting actions to achieve those objectives. An honest appraisal of a client’s risk profile is the crucial link between that plan and the eventual asset allocation. Without such appraisal, the asset allocation will undoubtedly fall short of expectations and acceptable outcomes.

Once the parameters – income and capital requirements, capacity and willingness to take on risk, time horizon etc. – are set, specific asset allocation options can be considered. Cameron Harrison's asset allocation strategies have been designed to offer different risk-adjusted returns, which we then assess against each client’s investment objectives and risk profile. Our asset allocation suite provides different proportions of asset classes allowing for differing levels of market risk.

In broad terms, our asset allocation suite caters for the ultra-conservative investor (Interest-Bearing Securities strategy), the aggressive investor (High Growth strategy), and everyone in between. As each client will have varying needs, we will craft a bespoke allocation to meet their highly specified requirements where one of our core spectrum strategies doesn’t quite fit.

Explore a taste of our asset allocation suite in the video below.

For more information on Cameron Harrison’s investment suite, view our Asset Allocation Guide.

Asset allocation strategy and its integration with client outcomes is Cameron Harrison’s central activity and focus. Our constant, reiterative process leads the dialogue we have with clients each time we meet, and it is this ongoing, dynamic nature of asset allocation setting that ensures a client’s investment strategy remains suitable for both their circumstances and the prevailing economic time.

Peace of Mind Investing

Cameron Harrison have been advising business owners and their families on asset allocation and intergenerational wealth management for over 50 years. We have demonstrated over a long period our ability to manage investments through both the good times and bad by keeping the client at the centre of our business. 

For more information on our approach to investment strategy or any other inquiries, please contact us on +61 3 9655 5000.