Glossary · concept
Asset Allocation
Also known as: strategic asset allocation, SAA
- Definition
- Asset Allocation is the strategic distribution of an investment portfolio across asset classes — equities, fixed income, alternatives, real assets, cash. Considered the single biggest determinant of long-term portfolio performance.
Singapore HNW / UHNW portfolios typically use a 60/40 baseline (60% equities, 40% fixed income) with alternatives sleeves of 10–30% for UHNW clients. Family-office portfolios commonly use endowment-style allocation with substantial alternatives (PE, hedge funds, real assets) and lower fixed-income weights. Strategic vs tactical asset allocation distinguishes long-horizon target weights from short-term adjustments around the strategic baseline.
Related
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