Financial Terms / asset allocation report

US Public Plan Asset Allocation Report

An asset allocation report shows that U.S. public plans are over-allocated to private equity, hedge funds, and under-allocated to real assets and multi-asset strategies, relative to their intended use.

How do I calculate the asset allocation report?

Percentage-based allocation: In this approach, the allocation percentages for each asset class are pre-determined. The formula for calculating the allocation amount for an asset class is:
Allocation Amount = Total Portfolio Value * Allocation Percentage

Dollar-based allocation: In this approach, the allocation amounts for each asset class are specified in dollar amounts. The formula for calculating the allocation percentage for an asset class is:
Allocation Percentage = (Allocation Amount / Total Portfolio Value) * 100

Market Value-weighted allocation: This approach considers the market value of each asset class in the portfolio. The formula for calculating the allocation percentage based on market value is:
Allocation Percentage = (Market Value of Asset Class / Total Portfolio Market Value) * 100

Risk-based allocation: This approach considers the risk tolerance or risk profile of the investor. It may involve using statistical models, risk metrics, or optimization techniques to determine the optimal allocation. The specific formula will depend on the methodology used.

It's important to note that these formulas provide a general understanding of asset allocation calculations. The actual calculation method may vary depending on the specific guidelines or methodology you are following. Additionally, it's recommended to consult with a financial professional or utilize specialized portfolio management tools to ensure accurate and effective asset allocation calculations. Set up your spreadsheet: Open a new spreadsheet in your preferred spreadsheet software, such as Sourcetable.

Define the column headers: In the first row of your spreadsheet, specify the column headers. Typically, you'll have two columns: "Asset Class" and "Allocation Percentage."

Enter the asset classes: In the "Asset Class" column, list the different asset classes that you want to include in your report. Place each asset class in a separate row, starting from the second row.

Enter the allocation percentages: In the "Allocation Percentage" column, enter the allocation percentages corresponding to each asset class. Each allocation percentage should be entered in the row that corresponds to its respective asset class.

Calculate the total allocation: In a cell outside of the table, use a formula to calculate the total allocation. Assuming your allocation percentages are in column B and you have n asset classes, you can use the following formula: =SUM(B2:Bn+1).

Format the table: Format the table by adjusting column widths, applying desired cell formatting (e.g., font size, alignment, borders), and applying any other desired visual styling.

Add additional information (optional): If desired, you can include additional columns for other relevant information, such as current value, target allocation, or any other data that is relevant to your asset allocation report.

Customize and expand: Feel free to customize the report further based on your specific requirements. You can add additional formulas, charts, or graphs to enhance the presentation of the asset allocation report.

By following these steps, you can create an asset allocation report in a spreadsheet.

What is Asset Allocation?

Asset allocation is an investment strategy that seeks to balance risk and reward by dividing investments among different asset classes.

What are asset classes?

Asset classes are categories of investments that share similar characteristics, such as stocks, bonds, cash, and commodities.

How does asset allocation work?

Asset allocation works by diversifying your investments among different asset classes. This helps to spread out your risk and increase the potential for higher returns over time. The goal is to create a portfolio with an optimal balance of risk and reward.

What is an Asset Allocation Report?

An Asset Allocation Report is a document that provides an overview of an investor’s current asset allocation and offers recommendations for how to adjust it to reflect their goals, risk tolerance, and other factors.

Key Points

Target-date fund
An asset allocation report key point is that a target-date fund is a fund that will grow assets over a predetermined period of time. This fund is specifically designed to achieve a specific goal such as retirement, college savings, or other long-term financial goals.
Asset Allocation
Another key point of an asset allocation report is that it is a strategy that helps investors to diversify their investments. This strategy helps to spread out the risk of investing across different financial instruments, such as stocks, bonds, commodities, and cash. The asset allocation report can help investors determine the best mix of investments to meet their goals.
Risk Management
Asset allocation reports can also help with risk management. This means that investors can use the report to assess their current risk tolerance and then make adjustments to their portfolio accordingly. This can help them to reduce overall risk while still achieving their desired level of return.
Time Horizon
The time horizon of an asset allocation report is also important. This is because it will help investors to determine how long they should stay invested in a particular asset class. The report can also help investors determine when they should start taking profits or losses.
Finally, asset allocation reports can help investors to diversify their portfolios. This means that they can spread their investments across different asset classes, such as stocks, bonds, and cash, to reduce the overall risk in their portfolio. This can help investors to achieve their goals without taking on too much risk.

Make Better Decisions
With Data

Analyze data, automate reports and create live dashboards
for all your business applications, without code. Get unlimited access free for 14 days.