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Integra offers all clients an annual review of their portfolios, a key part of our ongoing service commitment

Asset Allocation: Overview

What do we mean by Asset Allocation and why is it important?

Broadly speaking there are four main asset classes into which you can invest: cash, bonds, equities and property. There are also many sub–divisions within each of these classes but these are the four main groups.

Your money will be allocated across these different classes to obtain the best possible investment returns, in line with your personal expectations and attitude to risk. It is not about having a knee-jerk reaction to market changes, but sticking with the underlying investment principles. We believe that clients with well constructed portfolios are in a strong position to weather any storm and capture positive returns when markets pick up. Underpinning this strategy is the basic principle of not placing all of your eggs in one basket.

The first question which many financial advisers ask themselves when they begin investing a client's money is “Which fund should I choose?“. However, the consensus amongst investment experts is that getting the right asset allocation, rather than concentrating on individual fund choices, is by far the most important factor in maximising long term performance. In fact, research has proven that more than 90% of investment performance comes from Asset Allocation, with less than 5% coming from fund selection. Therefore it is with Asset Allocation rather than fund selection that we begin our process.

Each of the Asset Classes has a different Risk and Return profile and a key aspect of the Integra process involves our working with you to establish the ideal balance for your portfolio.

This pie chart explains the percentage breakdown of our investment returns : Asset Allocation - 91.5% Stock Selection - 4.6% Market Timing - 1.8% Other - 2.1%

The value of investments and the income from them can fall as well as rise and past performance is not a guide to future performance. You may get back less than you invested as investment returns are not guaranteed.



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Integra Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FRN 612749).
Registered in England & Wales at 1 Summerwood, Charters Road, Sunningdale, Ascot, Berkshire, SL5 9SQ. Company Registered Number - 6390466