Asset Allocation

Asset allocation is the art and science of determining which asset classes to avoid and which asset classes to own during specific market and economic cycles.

Determining an appropriate mix of investments among different asset classes (Cash, Stocks, Bonds, Real Estate, Gold/Silver Bullion, Natural Resources, etc.) is essential for risk management.

Diversifying across multiple asset classes with low correlations to one another can help minimize periodic portfolio volatility and other financial risks, while providing exposure to factors that generate growth and income potential and help offset inflation.

A Tactical Approach

AFCG utilizes a Tactical Asset Allocation (TAA) strategy for client accounts.  We invest across multiple asset classes for volatility management, global diversification, and inflation protection with hard asset exposure to Gold/Silver, Energy, and Natural Resources.

In our judgment, today's economic environment requires a different investment strategy than the "60/40, stocks/bonds" model that historically constituted a "balanced" portfolio.  As the investment market's appetite for risk changes over time, asset allocations need to be adjusted accordingly.

Overall, our tactical approach provides us with the flexibility to actively manage market risk factors and adapt portfolios to fundamental economic changes and geo-political events as they occur.

Our Top-Down Investment Process

We employ a top-down investment process to develop a "big picture" assessment of global macroeconomic conditions, geo-political trends, and predominant risk factors in the financial markets.  

Our global macro analysis then dictates the risk management strategy and tactical investment mix by asset class, sector, and security at the portfolio level. 

Portfolio Construction and Models

Our model portfolios are designed to meet each client's specific financial objectives and risk tolerance.  We also create custom portfolios to allow for certain legacy assets, concentrated investment positions, unique tax situations, etc. 

Please contact us to learn more about our asset allocation strategy implemented for client accounts.                 

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