Understanding asset allocation models

Module "Portfolio Service Extended Portfolio Analysis"

The Infront Portfolio Manager already contains a number of predefined models for portfolio structuring that you can adopt or adapt to your local requirements. But you can also create completely new asset allocation models.

An asset allocation model determines the target weightings of basic asset class combinations. It therefore consists of a set of basic asset classes for which a target weight and permissible tolerance values are defined. The basic asset class combinations may well overlap, but not all asset positions need to be covered. The sum of the target values can therefore be both greater and less than 100%. Each of the weight definitions is evaluated independently of the others and reported in the event of deviations.
Basic asset class combinations are made up of individual basic asset classes. For example, the basic asset classes "USA" and "Equities" can be used to form the basic asset class combination "Equities, USA", which includes asset positions that are counted under both "Equities" and "USA".

The basic asset classes are configured centrally in the system together with the asset classifications by a user with the appropriate rights. Please read the section Edit basic asset classes.

The asset allocation models, which are also recorded by name, are defined and processed in the context of Portfolio properties .