Active Asset Allocation

Setting boundaries for risk exposure and return potential

Diversification allows you to reduce risk, while providing you access to global opportunities. That combination is a sound investment strategy.

Short- and long-term recommendations

Our active asset allocation recommendations are based on our shorter-term expectations (a 6- to 18-month perspective). Our longer-term, strategic asset allocation recommendations are designed for investors willing to tolerate the ups and downs of the financial markets across a full market cycle that includes both bull and bear markets.

 

Our blend of qualitative and quantitative analysis enables us to design diverse asset allocation portfolios.

  • Liquidity to manage short-term expenses
  • Risk/return preferences
  • Tax considerations
  • Funding specific liabilities

 

Knowledge Center Strategic Asset Allocation: The Main Principles of Our Approach Setting the right foundation for achieving your portfolio goals and objectives

Our blend of qualitative and quantitative analysis enables us to design diverse asset allocation portfolios that fall into two broad categories:

  1. Stability focused: Potential asset classes are screened according to risk metrics like peak-to-trough declines. We manage risk on an absolute basis, rather than relative to a benchmark.
  2. Growth focused: These are designed to meet the goal of achieving the highest possible return for a given risk tolerance. With these, we manage risk on a relative basis, in an effort to ensure participation in broad market rallies.

Applying investor risk preferences to all aspects of the investment process has led to innovative investment strategies, such as a fund that aims to generate long-term returns similar to the broader equity market, but with less volatility, which have gained greater adoption in the industry.

Watch: Active Management

Legal Note

This material is not intended to be a forecast of future events, a guarantee of future results and should not be relied upon by the reader as research or investment advice. It is intended for educational purposes only and is provided by SEI Investments Management Corporation (SIMC), a registered investment adviser and wholly owned subsidiary of SEI Investments Company.