Asset Allocation & Portfolio Management: Model Portfolio by Risk Profile

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In this section we will give you examples of Asset Allocation by risk profile.

The asset classes used are:

• Money Market and Short Term Bonds: In this category we have cash, checking, savings accounts, term deposits and less than one year investment grade bonds. More on Bonds...
• Bonds: In this category we have investment grade bonds. More on Bonds...
• Emerging Market Bonds: In this category we have non investment grade bonds. More on Bonds...
• Local Equities: In this category we have stocks listed on your local market. More on stocks and shares...
• Real Estate / Indirect Property Equities: In this category we have real estate (your main residence excluded) and stocks related to property. More on stocks and shares...
• International Equities: In this category we have stocks listed in or related to a foreign developed country. More on stocks and shares...
• Emerging Market Equities: In this category we have stocks listed in or related to an emerging market. More on stocks and shares...

Based on risk profiles, we will give you an example of spread between the above asset classes.

The other risk profiles are:

• Prudent
• Moderately Prudent
• Defensive
• Moderately Defensive
• Balanced
• Moderately Aggressive
• Aggressive
• Very Aggressive