With this in mind, modern asset allocation decisions for multi-asset portfolios are based on regular reviews to capture both medium-term and shorter-term opportunities but also to ensure portfolios do not drift away from their long-term risk objectives.
Dynamic asset allocation and the sophisticated techniques used to achieve it require extensive research and technical resources. It is something most individual investors will find difficult to emulate and many choose experienced professionals to look after their multi-asset portfolios as a result.
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Jane Davies is manager of the HSBC Global Strategy funds
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