Glossary
Strategic Asset Allocation
Strategic Asset Allocation refers to the long-term target weighting of a portfolio across asset classes such as equities, bonds, real estate and alternative investments. It is derived from the client's Risk Profile and Investment Horizon and serves as the reference point for all operational investment decisions within the mandate.
At a glance
- The strategic allocation is typically set for several years and revised only when there are fundamental changes in the client's situation.
- It differs from Tactical Asset Allocation, which exploits short-term market opportunities.
- A broadly diversified strategic allocation can spread risk but does not exclude losses.
Frequently asked questions
As a rule, at least once a year during a mandate review meeting and whenever there are material changes to the client's personal or financial situation. Short-term market movements alone are not a reason to revise the strategic allocation.
Part of the topic
Discretionary Mandates
This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.