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An Integral Approach to Determining Asset Allocations
Published on January 10, 2004
The article “An Integral Approach to Determining Asset Allocations” describes the concepts behind our financial planning software solution OPAL. It focuses on an integral approach to optimally allocating assets based upon clients’ risk tolerance levels and their long-term investment objectives. Traditional approaches to determining asset allocations can lead to sub-optimal solutions. The integral approach uses simulation techniques to show possible returns as a result of investment decisions over a multitude of future financial and economic scenarios. Based on these scenarios, short-term and long-term investment risks can be calculated in order to determine an asset allocation that best meets the client’s requirements, taking into account expected results as well as investment risks.
The article has been published in the Journal of Financial Planning and can be found at fplanet.org , newtheir website