Asset Allocation

Three tools for a resilient portfolio

Jeffrey Knight, CFA, Head of Global Asset Allocation | January 15, 2014

Portfolio resilience refers to the ability of a portfolio to withstand unanticipated adversity and to respond from that adversity. Effective diversification requires thinking not only about allocating the assets in a portfolio but about allocating the risks. A flexible strategy enables a portfolio to adapt to changes in the relative attractiveness of different risks. Watch:

Asset allocation chart December 2013

Jeffrey Knight, CFA, Head of Global Asset Allocation | January 6, 2014

Updates from previous allocations: We remain modestly overweight equities because we expect them to outperform bonds as central banks remain accommodative. Leading indicators are improving, suggesting better global growth ahead. We expect cash and fixed income to underperform and we also continue to favor absolute return strategies. We remain underweight U.S. equity allocations mainly on

Asset allocation November 2013

Jeffrey Knight, CFA, Head of Global Asset Allocation | December 12, 2013

Changes over previous allocations: 1. Remain modestly overweight equities, expect equities to outperform bonds; Central Banks remain accommodative. Leading indicators are improving, suggesting better global growth ahead. Expect cash and fixed income to underperform; continue to favor absolute return strategies. 2. Remain underweight U.S. equity allocations mainly on relative valuation (limited near-term upside). Better opportunities