Asset Allocation

Asset allocation is the decision that explains most of a portfolio's long-run outcome - and the one most often made by default. This guide collects the Knowledge Hub's asset-allocation entries - strategic versus tactical, regime-based approaches, and the frameworks institutions use to translate objectives into exposures - each connecting the framework to the portfolio outcome it is meant to produce.

All entries in this guide

• Asset Allocation - Asset allocation is the decision of how to split a portfolio across asset classes (equities, bonds…
• Rebalancing - Rebalancing periodically restores a portfolio to its target weights, selling assets that have grown and…
• Risk Parity - Risk parity sizes allocations so that each asset contributes equally to portfolio risk, rather than to…
• Volatility Targeting - Volatility targeting scales exposure inversely to forecast volatility - up in calm markets, down in…

More topic guides

• Options & Derivatives
• Volatility
• Macro & Multi-Asset
• Performance Measurement
• Risk Management
• Hedge Funds & Alternative Strategies
• Portfolio Construction
• Fund Structure
• Fund Operations

Browse the full Knowledge Hub · Produced by EC Assets Research