Introduction – Portfolio Management Service

Asset allocation is the implementation of an investment strategy that attempts to balance risk versus reward, by adjusting the percentage of each asset in an investment portfolio according to an accepted risk tolerance, investment objective and established time-frame.

These, and other factors, may alter over time, which may require a change in the ongoing investment strategy, either in the short-term or longer-term.

Types of Asset Allocation

The fundamental objective of asset allocation is to devise an appropriately diversified portfolio in order to reduce risk and improve the likelihood of attractive investment returns. This can be achieved either through ‘Strategic Asset Allocation (which is compatible with a “buy and hold” approach), or a Tactical Asset Allocation (which tends to involve a more active trading approach).

Tactical Asset Allocation is an active management portfolio strategy that shifts the percentage of assets held in various categories to take advantage of economic, political and market events, identified trends, well-reasoned predictions and occasional pricing anomalies.

The ongoing strategic investment management of pension portfolios by Reeves Independent Wealth Management is more akin to the Tactical Asset Allocation approach. This strategy allows us to create extra value by taking advantage of certain situations in the marketplace, as and when they arise. It is a moderately active investment strategy, whereby we seek to take advantage of short-term profitable positions, whilst maintaining an underlying strategic investment portfolio.

How do we achieve this?

The composition and performance of our model investment portfolios are constantly monitored. The Reeves Investment Team meets regularly on a monthly basis to review the composition and performance our model investment portfolios and re-evaluate our existing investment strategy. The dynamics of ongoing market, economic and political events are constantly monitored on a daily basis and summarised in weekly internal Investment Outlook Reports, which are presented to the entire Reeves Independent Wealth Management team. Any urgent matters requiring immediate attention and/or action are raised on an intra-day basis. Our active approach to managing our asset allocation reflects the overriding objective of achieving optimum investment outcomes for our clients.

  • 30 November, 2016