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Investment philosophy and process

Asset allocation

Setting a solid foundation.

One of the best ways to maximize the chances of investment success is to avoid making emotionally-driven portfolio changes. Yet, when market volatility inevitably strikes, many investors struggle to not act on their anxieties.

We believe the construction of a diversified portfolio is the most powerful tool investors have to guard against those anxieties.

Proper asset allocation can help investors remain focused by minimizing potential uncertainties about their outcomes. It is the key to building portfolios that:

  • align major financial goals (such as retirement, education or lifestyle) with risk tolerances—to help improve investor understanding of how their current investments support their objectives
  • provide access to a variety of asset classes and risk exposures, reducing reliance on any one source of return—to encourage and sustain investor confidence that the investment strategy is well prepared for financial success across a wide range of economic and market scenarios.
¹Risk tolerance assessment takes account of factors such as age, time horizon, and capacity for loss.EquityFixed income Multi-asset85% 5%10% 10%45% 45%20% 55% 25%Allocating across asset classes and risk exposuresAGGRESSIVEMODERATEDEFENSIVEInvestment strategy risk exposureSample goalRetirement in 20 yearsRisk toleranceGrow wealthSample goalChildrens education beginning in four yearsRisk toleranceBalance risk and growthSample goalMajor purchase next yearRisk toleranceProtect wealthAligning investor goals with risk tolerances¹

*Hypothetical example for illustrative purposes only. Subject to change. Individual circumstances may vary. 

Important Information

This information should not be relied upon by the reader as research or investment advice, nor should it be construed as a recommendation to purchase or sell a security. The reader should consult with their financial professional for more information.

Statements that are not factual in nature, including opinions, projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice.  Nothing herein is intended to be a forecast of future events, or a guarantee of future results.  

There are risks involved with investing, including loss of principal. There is no assurance the goals of the strategies discussed will be met. Diversification may not protect against market risk. The value of an investment and any income from it can go down as well as up. Investors may get back less than the original amount invested. Returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results. Investment may not be suitable for everyone.

This material is not directed to any persons where (by reason of that person's nationality, residence or otherwise) the publication or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not rely on this information in any respect whatsoever.

Information provided in Canada by SEI Investments Canada Company, the Manager of the SEI Funds in Canada.