Fund manager Vanguard has launched an online asset allocation training course for financial advisers that starts with the premise that allocation decisions account for around 80% of returns.
Financial advisers will have access to video tutorials, topical guides and multiple-choice tests to help them deepen their knowledge on asset allocation. Advisers will also earn credits towards Continuous Professional Development, or CPD, accreditation.
The course has five parts, including a section on “making the big decisions”, which looks at the different types of return from asset classes and key elements of risk.
Vanguard will also run workshops for advisers that will cover home bias, bonds in a rising environment and what to consider when using active and passive funds.
Neil Cowell, head of UK retail sales for Vanguard, says, "Asset allocation may appear simple but according to a number of academic studies, 80% of investment returns comes from making the big decisions between equities, bonds and cash.”
A firm grounding on the basic elements of asset allocation is important because of today's volatile financial markets, he says.
“While investors may be tempted to make shifts in their portfolios, often taking no action is an active decision, and often it is the right decision for reaching long-term financial goals."
The module is available on Vanguard's learning website: www.vanguardlearning.co.uk.
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