Strategic asset allocation is the first and most important step in systematic and long-term planning of a portfolio. It is about determining the basic risk-return characteristics for a portfolio that comply with the investor’s goals.

Our special report looks at how to determine a combination of liquidity, security and return targets and then select a mix of assets that suits the investor's goals as closely as possible.


As financial markets are subject to changes over time and the investor’s objectives may change as well, the strategic allocation is subject to change over time. It should therefore be reviewed at regular intervals whether the chosen allocation is still appropriate.


Key takeaways:

  • The first step to develop an asset allocation for private clients is to get data supplied by the investor, which define the respective investment targets and restrictions for portfolio management.
  • A strategic asset allocation is the approach of choice to replicate the defined investment targets and restrictions. Over time, the strategic asset allocation has to be monitored and adjusted according to the investment targets and restrictions.
  • The toolkit can be enhanced and further components like tactical asset allocation, stock selection, investment themes or risk overlay can be applied in order to improve portfolio performance.


The CIO Special below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.



In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S. No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive. Investments come with risk. The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk.

Change of name: As part of Deutsche Bank’s Private Bank, the former International Private Bank also adopted this title on July 20, 2023.

The content and materials on this website may be considered Marketing Material. The market price of an investment can fall as well as rise and you might not get back the amount originally invested.  >The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Please consider the sales restrictions relating to the products or services in question for further information. Deutsche Bank does not give tax or legal advice; prospective investors should seek advice from their own tax advisers and/or lawyers before entering into any investment.


Related special reports

See more