Investment Consulting Services

Asset allocation is the percent allocated to different asset classes such as stocks, bonds, cash, commodities, and real estate. An investor's asset allocation is generally regarded to be the single most important factor in explaining a portfolio's future return (even more so than manager and security selection). Therefore, it is of critical importance that a client's asset allocation is consistent with their long-term investment goals and objectives. Financial planning requires finding asset allocations that would be appropriate for a persons needs and risk limits. Asset Allocation is proper portfolio diversification and a reputable fiduciary in your corner. Johnston Investment Counsel is skilled in asset allocation and client needs.

In assisting clients, JIC must first listen to the client's goals and objectives. Once we have an idea of the client's objectives, we use a combination of quantitative and qualitative analysis to evaluate the impact of different asset allocations.

In its quantitative review, JIC creates a customized financial model. We start with initial portfolio values, incorporate future cash flows, and model different return environments. We can then show the effect different asset allocations and return environments may have on a client's future portfolio value and the likelihood of achieving their specific objective.

JIC's qualitative analysis is a questionnaire designed to better understand a client's unique views about risk taking and their willingness to accept volatility in their portfolio's market value. In setting asset allocation policy, both quantitative and qualitative factors should be considered.

Learn more about JIC's asset allocation process.

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