hr: Money

Some say that Asset Dedication is the new Asset Allocation. According to Stephen J. Huxley and J. Brent Burns, asset dedication was the result of the evolution of asset allocation. It is meant to end the procrustean approach in classifying the investment profiles and approaches of every client or investor.

Brokerage firms usually classify investors as “Aggressive”, “Moderate”, or “Conservative”. After classifying which character the investor is, a recommended blend of XYZ is now put into play. But how sure are we that this investor has the proper blend of stocks, bonds, and cash?

Asset Dedication could be completely described as a case where patients visits their respective optometrists. Optometrists, after doing some testing procedures, will give you your same eye sight reading. Unlike brokerage firms who have their own investment questionnaires aimed at providing you with the right mix of stocks, bonds, and cash, they will, I personally doubt, give you the same blend of XYZ.