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Strategic asset allocations

The right mixture of assets

A key step in delivering the investment outcomes your clients expect is establishing the right mixture of assets for them. To help you do this, we work with leading investment consultancy, Willis Towers Watson, to offer asset allocation models that are updated every quarter.

View the asset allocations broken down by risk level

View standard asset allocations

Asset allocation assumptions – changes in December 2021 update

Alongside the regular update to our standard asset allocations this December, we will be making some changes to our asset allocation process and assumptions.
Changes to our asset allocation process and assumptions

Strategic asset allocation principles

These model asset allocations:

  • underpin the online tools you can use to construct/rebalance portfolios
  • enable you to offer a portfolio of assets that is diversified, balanced and designed to work as a whole
  • use a process called ‘mean variance optimisation’ to produce a portfolio with the highest mathematically expected return for your client’s level of risk
  • are matched to the level of risk appropriate for your client and mapped with an expected portfolio volatility level. To measure risk, we use a method called the standard deviation of investment returns; in other words, how much returns may move up and down relative to their long-term average rate of return
  • are backed by robust, forward looking economic data and take into account a set of assumptions about economic conditions and fund expenses.

Next steps

Portfolio builder & asset allocation optimiser tool

Build portfolios based on either your own asset allocation or Towers Watson asset allocation to provide centralised investment propositions for use with your clients.

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Latest quarterly asset allocations review

The latest Willis Towers Watson (WTW) parameter review of the economic assumptions underlying the optimised portfolios available through our platform gives results to asset allocations.

Read the latest quarterly review

Asset allocation process and assumptions

The process of the economic assumptions that underpin the financial models involves the production of a quarterly parameter review report.

Understand the process