Insights

What you need to know about asset allocation

image of a dolar in a white background
One of the most important decisions you can make when it comes to your investment portfolio u2014 and one youu2019re sure to revisit often u2014 is your asset allocation strategy. This involves the strategic placement of your investments in different asset classes such as stocks, bonds, real estate, and cash. Within the stock and bond asset classes there are also regions, styles, or sectors to allocate to.

How to determine the right strategy for you

<p><b>1. </b>What are your financial goals? Are you looking to generate secure income? Save for retirement? Working toward a down payment? This will help determine your asset allocation. Life changes matter too: have you changed careers or added a family member?</p>
<p><b>2.</b> What is your timeframe? The return you expect and the timeframe in which you intend to use the funds will determine both how conservative and liquid your strategy should be. Have timelines changed?</p>
<p><strong>3.</strong> How risk averse are you? <strong>Asset allocation</strong> is driven by your objective risk capacity covered in part by the first two points, but also by your unique personal risk tolerance. People have different characters and personalities, so itu2019s important to match up your portfolio to yours.</p>

Types of asset allocation decisions

<p><strong>Strategic: </strong>Every investor needs a long-term strategic allocation and a plan to keep on it. Different asset classes rise and fall, so periodic rebalancing keeps your portfolio on track for the right amount of risk and can even capture some relative value by trimming the best performing asset classes and topping up the relative laggards. u00a0</p>
<p><strong>Tactical: </strong>The tactical approach additionally allows for more proactive adjustments to the asset mix. Active tactical positioning requires macroeconomic knowledge, effort, and a repeatable process to make decisions based on news, data, and insight.</p>
<p>No matter which asset allocation strategy you decide on, youu2019re bound to be successful if you review your portfolio regularly and keep an open dialogue with your portfolio manager.</p>
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Client impact

“Graduating from a big bank to Genus was one of the best financial steps we've ever taken. Genus has delivered reliable asset growth despite our moderate risk tolerance. As our financial security has grown, we've also been the beneficiaries of a great client experience. The company's communications have been consistently transparent and informative, including educational webinars and a well-designed web portal where we can track investments daily. Most importantly to us, our portfolio manager has always responded swiftly and thoroughly to our questions and requests. ”
Martin T.
"Having relatively diverse financial goals and needs, along with a slight reticence regarding the stock market, Genus skillfully addressed all of our concerns, and put together a truly exceptional plan: Fossil free funds and a diversified investment portfolio, check; An effective Impact investment portfolio that coincides with our hopes and dreams for a better world, check; Professional advice and assistance to create a donor advised charitable fund with immediate charitable receipts for tax purposes, check. Returns? Way beyond our expectations! We even had some fun along the way and certainly enjoyed an incredible two-year start to what will be a satisfying long-term relationship with Genus."
Marc B.
“I love the service I get at Genus.”
Chris H.
“Leslie and I were fellow board members when we met twenty years ago. For the last ten she has been thoughtful in the construction of an investment strategy for my family and is executing the strategy as planned. The team at Genus has met my expectations and are a pleasure to deal with.”
Bob Q.
“For over 15 years, I have provided selection and performance evaluation of multiple investment managers for a significant family office. Leslie and Genus have been foundational for me in my role. I have always found Leslie and her colleagues to be insightful and proactive, and found the performance of their portion of the portfolio to be well above benchmarks. And they have been a great pleasure to work with.”
Douglas H.
“Genus is a very innovative firm. I am pleased to invest in their Fossil Free and Impact strategies that help me invest in line with my values.”
Marnie C.
“Great team of professionals. Excellent website and reporting. Responds to inquiries promptly. Very pleased with the process of changing from another company to Genus as well. Kudos.”
David L.
“Genus consistently provides a good, clearly explained, comprehensive picture of the general economic and financial situation, along with an excellent account of the investment decisions made in relation to this. Genus’ equally strong concern with clients’ questions and requests for further information is also a very important part of the service it provides.”
Allan S.
“Back in 1992 when I found myself at fifty with a substantial amount of money to invest, I knew just one thing — that I didn’t want to contribute to tobacco companies, arms manufacturers, or oil. But over the ensuing years the options for socially responsible investing have become far more sophisticated and I’m very happy that this is a big part of the Genus approach. I also very much appreciate the long-term relationship with my portfolio manager, Mary Lou.”
Ann P.

As seen in

Are you ready to make an impact
with your investments
?