Asset Allocation Strategies
Bonadio Financial Services can provide assistance for allocating your assets in a way that will help you realize your personal financial objectives.
At BFS, we believe that it may not be immediately possible to recognize the transition from one market to the other, therefore, we may incorporate multiple asset allocation approaches at the same time as part of your long term, disciplined plan. Generally speaking, BFS will explain, and help you select the approach that’s right for you.
Selecting the Approach That’s Right for You
The BFS Asset Allocation Approaches
Strategic Asset Allocation
Using a strategic asset allocation approach, BFS creates a mix of asset classes (equities, fixed income, and cash) which are designed to capture broad capital market returns while balancing risk and volatility. While the allocation mix is intended to remain consistent for a period of time, the mix may shift out of alignment due to uneven returns among the asset classes. Periodic rebalancing restores the allocation to its original mix.
Tactical Constrained Asset Allocation
Tactical Constrained approaches attempt to capture broad market returns while also seeking to take advantage of shorter term opportunities or mitigate risks through moderate allocations shifts. The portfolio strategist may also create the potential to add additional value through active, near term allocation decisions.
Tactical Unconstrained Asset Allocation
This approach removes the limits on the extent and frequency of allocation shifts, allowing the portfolio strategist to move more aggressively in response to changes in their outlook. Without a set target mix, the portfolio strategist can opportunistically position their portfolio based upon the market. The primary drivers of returns are the decisions of the portfolio strategist regarding the type and size of asset class exposure.
Absolute Return Asset Allocation
This type of asset allocation may be useful for risk-averse investors comfortable with modest returns in exchange for highly active risk management that may include frequent allocation shifts, non-traditional asset classes and/or alternative strategies. Absolute strategies may be used for attempting to “row” toward your goals regardless of the stock market’s direction.
*Asset allocation does not assure a profit or protect against loss in a down market.
