Asset Allocation

Asset allocation – what is best for you?

Asset allocation is the apportionment of your investment dollars amongst different asset classes (e.g. shares, property, fixed interest investments). In determining which asset classes suit your specific financial needs, your Charter financial adviser will explain the various asset classes and the risk related to investing in these sectors.

Most investments can be categorised into two major groups – growth assets and defensive assets – with two major sectors in each. Click here to view information.

Deciding how much to invest in each asset class will depend on several of the following factors:

• Market conditions;
• Desired return;
• Investment time frame;
• Long term income requirements; and
• Tolerance to fluctuations in return.

Diversification across different asset classes

By using a blend of the various management styles of leading fund managers, Charter helps to smooth investment returns and manage the level of investment risk over the long term.

A range of leading fund managers

LFA has developed an Authorised Product List form the many thousands of retail products available. The product list features more than 400 investment products from over 40 fund managers. These fund managers are subject to continuous and thorough analysis. The products offered are carefully selected based on the growth and value potential of the fund manager, as well as complementary investment management styles. This ensures that financial products recommended by LFA have the diversity to meet your needs and expectations.

Asset diversification increase the probability of achieving real return each year. 70 – 75% of returns from managed funds are achieved by correct asset allocation.*

*Source: ASSIRT

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