View more on these topics

Asset allocation puzzles three-quarters of savers

Nearly three-quarters of investors do not understand the meaning of asset allocation, says JP Morgan Fleming.

In a survey of 578 savers and investors, only 27 per cent correctly defined asset allocation as the way in which a portfolio is spread across different types of investment.

Nine per cent thought it referred to borrowing money to spread risk while 6 per cent said it related to giving away possessions as a tax dodge. Three per cent said it was investing only in tangible assets such as property or gold and 1 per cent thought it did not even relate to investment but was the distribution of muscle around the body. The remaining 54 per cent could not come up with a definition at all.

The results of the survey coincide with JPMF launching an asset allocation guide to explain the differences between the key asset classes of equities, bonds and cash. It demonstrates how these can be combined to reflect an investor&#39s attitude to risk and requirements for growth and income.

Global head of equities Martin Porter says: “Asset allocation had often been described as the most important factor in an investment portfolio so the fact that such a high proportion of savers and investors do not know what it means is a concern.”

Chartwell Investment Management Sue Whitbread says: “It is a broad, woolly, jargon term and I am not surprised people do not understand it. It is more for the professionals.”



“There have been numerous contributions over the decline of the sector, not just Paul Smee.” Ian Potter, Jackson Potter Advisers“Absolutely. Time and time again, the industry is slighted and these people contribute nothing to add value or help us. They are under the illusion that we are a profession but as yet we have not […]

1% cap forces Widows to scrap commission on low premiums

Scottish Widows says the stakeholder charge cap has forced it to axe commission for some group pension business. It will no longer pay commission on new group personal pensions, occupational money-purchase and stakeholder schemes where there is no employer contribution or where the average premium per member is £100 or less a month. It will […]

The right route to regulation

With the final mortgage rules now published and applications for FSA authorisation opening this month, everyone who receives enquiries about mortgages must be giving serious thought to their future status. Direct authorisation? Principal? Appointed representative? Introducer only? The choice will be influenced strongly by the question of how best to source compliance support, either in […]

Cazalet warns Standard listing will be no cash windfall

Standard Life is almost certain to demutualise but there will not be a windfall bonanza for policyholders, according to leading insurance analyst Ned Cazalet. Cazalet says the life office will need to float at about £3-4bn, assuming there has already been a much-needed substantial capital injection. But as Standard is demutualising out of necessity he […]

The curious market reaction to Brexit

Written by Mike Riddell29 June 2016 Headlines over the past few days have screamed about record falls in sterling, record low bond yields and massive falls in equity prices. However, if you take a slightly longer view of markets rather than simply the one- or two-day reaction, I think it’s amazing how little markets have […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm