Investment
Strategic Allocation
The long-term portfolio-management practice of setting and maintaining a target mix of asset classes (e.g., equities, fixed income, cash, alternatives) in accordance with investment policy statements and client objectives, typically reviewed annually or when fundamental circumstances change (CFA Institute, GIPS).
Quick answer: The long-term portfolio-management practice of setting and maintaining a target mix of asset classes (e.g., equities, fixed income, cash, alternatives) in accordance with investment policy statements and client objectives, typically reviewed annually or when fundamental circumstances change (CFA Institute, GIPS).
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Quick answer
The long-term portfolio-management practice of setting and maintaining a target mix of asset classes (e.g., equities, fixed income, cash, alternatives) in accordance with investment policy statements and client objectives, typically reviewed annually or when fundamental circumstances change (CFA Institute, GIPS).
Why it matters
Strategic Allocation matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Editorial context
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Definition
The long-term portfolio-management practice of setting and maintaining a target mix of asset classes (e.g., equities, fixed income, cash, alternatives) in accordance with investment policy statements and client objectives, typically reviewed annually or when fundamental circumstances change (CFA Institute, GIPS).
Operational example
Strategic allocation is designed to align the long-term portfolio structure with the investor’s return and risk objectives, rather than reacting to short-term market fluctuations.
Definition language
English reference definition
Source
CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
Target audience
- Financial Analysts
- Bankers
- Traders
