Allocation

Strategic Asset Allocation

Over the long term Margetts believe that capital markets are efficient. Modern portfolio theory can be combined with empirical evidence and experience to create a strategic model which defines the risk and return profile of a portfolio.

This first step is the most critical stage of creating a portfolio that will be suitable for an investor to meet their objectives.

We have set out a strategic allocation for each risk category, measured on a scale of one to ten.

To read more about the strategic asset allocation and the
expectations for risk and return please download a copy of the ‘Lessons from History’

Tactical Asset Allocation

pIn the short term capital markets are affected by investor sentiment and behaviour, which creates opportunity for active management.p

We believe that trends can be identified through a pragmatic and flexible approach. By adapting portfolios through the economic and investment cycles we believe that value can be added for investors over the long run.

This style of management is known as ‘top down’. Our views will affect our choice of underlying investments to find the right assets, managers and style of funds in relation to the current investment cycle.