Asset Allocation is one of the services provided by NBK Banque Privée to its clients.
It is the art of distributing the assets of a portfolio among different broadly defined Asset Classes, be it traditional (Cash, Bonds, Equities) or alternatives (Hedge Funds, Real Estate, Commodities, Private Equity).
Investments are made with a dedicated mix of these Asset Classes in order to achieve specific goals in terms of return, risk and other measurements.
As such, Asset Allocation is a central concept of wealth management, financial planning and investment management.
The effective Asset Allocation of a portfolio will vary from one client to another since it is highly dependent on:
- Age of the client or the life cycle in general.
- Expected return.
- Risk tolerance.
- Investment time horizon.
- Requested liquidity of investments.
- Other constraints.