At FTJ FundChoice, advisors can outsource asset allocation and manager selection decisions to third-party strategists. By outsourcing these back office tasks, advisors gain access to trained specialists, giving them more time to spend on clients.
This approach seeks to identify asset classes that maximize returns for a given level of risk. According to your client’s level of risk, an optimal portfolio is constructed. As time passes, the portfolio is re-balanced periodically to maintain the original desired asset class mix.
This is an active approach to asset allocation decisions. Like strategic asset allocation, an optimal portfolio is developed; however, changes are made to the portfolio based on underlying economic and market conditions. Asset classes are then over-weighted to capitalize on market inefficiencies.
Diversifiers are a counter balance to tactical asset allocation which focuses on risk and return, with an overarching goal to enhance diversification and protection. Diversifier strategies are very active and use a wider spectrum of alternative asset classes and approaches, with minimal dependence on market direction.