Glossary
Investment Management
Asset Allocation
Asset allocation is an approach to investment that allocates available capital according to the asset manager or asset owners’ risk appetite and to meet investment goals within stated investment timelines. Balanced asset allocation will typically spread investments across equity and debt, with smaller allocations to cash and, say, emerging markets, or alternatives such as property, private equity, hedge funds, and infrastructure. This has the effect of creating diversified and non-correlated exposures.