Asset Mix Process

On a regular basis, the Forstrong Investment Team determines the relative desirability of major asset types by evaluating them according to 10 groups of criteria and conditions.

Broadly, the relative influence of the factors surveyed in determining asset mix policy can be categorized as follows:


Fundamental Factors and Conditions


Qualitative Assessments


Risk/Return Characteristics


Quantitative Ratings


The following seven categories of factors are considered in determining the relative attractiveness of the three main financial asset classes. The Asset Mix Score Sheet portrays this grading exercise. Ratings are weighted and summed to indicate the relative attractiveness of an individual asset class. A high relative rating will recommend a portfolio weighting for that particular asset class towards the higher end of its allowed range (see previous page). Conversely, a low rating relative to other investment classes will force a portfolio weighting towards the lower end of that asset class’ prescribed range.

All of the following categories have separate defined methodologies and approaches.