Asset allocation is a portfolio management process where various asset classes (stocks, bonds, commodities, etc.) are combined in one portfolio. Risk and return are considered for the complete portfolio as opposed to evaluating individual securities or investments. Properly implemented, asset allocation is a time-tested approach that addresses risk through diversification, while positioning portfolios to achieve growth, income and other client-specific objectives. Our portfolios offer a broad spectrum of risk profiles, ranging from a conservative posture in the Income strategy to a more risk-tolerant profile in Aggressive Growth.
Confluence recognizes that risk levels and return potential rise and fall over market and economic cycles. Therefore, we apply an adaptive process, one that evaluates economic and market variables in a forward-looking context. Our approach evaluates the investing landscape against the backdrop of the pending business cycle—a rolling time frame continuously looking forward at the next three years, implemented via quarterly rebalances. The intention is to remain within an acceptable risk profile, while changing the asset class mix to optimize return potential. We may adjust allocations in much shorter time frames, depending upon changing views of the marketplace and economy. Alternately, we may continue for several quarters without making significant allocation adjustments if we believe the existing posture remains optimal.
The asset allocation portfolios utilize exchange-traded funds (ETFs). We may use ETFs that allow us to focus on or avoid particular industry sectors, bond maturities, commodities or countries.
- Asset Allocation Bi-Weekly Reports – Reports on macro factors informing the investment process
- Asset Allocation Quarterly – Fourth Quarter 2023 – Market outlook & rationale for portfolio allocations
- Quarterly Rebalance Presentations – Video discussions further highlighting current viewpoints
- Asset Allocation Strategies Fact Sheet
Income with Growth
Growth & Income