1. Asset Allocation What is it and how can you benefit? Insurance Concepts

2. What is Asset Allocation? Asset allocation is the art of apportioning investment funds amongst various asset classes such as:  Domestic v International  Emerging stocks v Bonds  Small v Large Cap equities  Cash

3. What’s the purpose? The goal of the asset allocation decision is to select a combination of assets that will generate the maximum amount of return for a given level of risk or, conversely, the asset allocation decision that provides the minimum amount of risk for a given expected return.

4. Here are 6 allocation options Maximum Growth Aggressive Growth Conservative Growth Growth and Income Income Capital Preservation

5. How much risk are you willing to accept? A Risk Profile Questionnaire will help you answer this question. It asks you a series of questions to help determine your risk tolerance level. Every investment carries a certain amount of risk. Generally, the greater the risk, the greater the potential reward. However, your investment personality, along with your investment timeline, will have an impact on how much risk you should consider.

6. Your Choice of Indexed or Managed Funds Chances are you’ve heard the expression “don’t put all your eggs in one basket” Well, that’s a situation you can avoid with an Asset Allocation Program. This approach helps diversify your investments and minimize volatility.

7. Benefits of Asset Allocation Funds Financial firms have developed various asset allocation funds or portfolios to meet the needs of different types of investors. Low risk funds typically consist of a higher percentage of money market and bond investments. Returns are lower but are more predictable (therefore, less risk) Conversely, high risk asset allocation funds are likely to invest heavily in stocks in order to maximize the potential for return. It’s important to look for the right asset allocation product.

8. For example, Manulife Financial's Insured Portfolio Funds offer a complete range of asset allocation portfolios ­ conservative, moderate, balanced, growth and aggressive. It can make good sense to take advantage of these structured asset allocation portfolios, because of the expertise with which they are built and managed. A team of investment professionals monitor the funds.

9. They use computer models to see how various investment components interact and contribute to the overall performance. These models help to identify the mix of asset classes and investment styles that is most likely to provide the greatest long term return for each target level of risk.

10. Get Asset Allocation working for you… Need more information or have questions? We are here to help. info@insuranceconcepts.ca Thank You