New 80-20 Investor asset allocation tool

6 min Read Published: 22 Oct 2015

In the article 80-20 Investor review – Outperforming 98% of fund managers I highlighted the importance of being able to benchmark your portfolio in order to judge its performance. Since then I have been working on a piece explaining how to benchmark your portfolio. You will see the fruits of that work in due course.

However a huge part of being able to accurately benchmark a portfolio is to accurately work out what assets your portfolio is invested in. Or in other words, calculate your portfolio's asset allocation. The trouble is that funds can hold hundreds of investments within them. Some funds even hold different types of assets (such as equities, bonds and property) while others will invest globally.

For example if you hold the popular Fundsmith Equity fund, then where exactly is your money invested? While it may be in the Global sector that isn't much use when working out the underlying asset allocation of your portfolio.

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