In Q2, the Balanced boundaries for the 1-5 strategy were:
From Q3, the Balanced boundaries for the 1-5 strategy will be:
The Q2 boundaries reflect the asset allocation that had remained unchanged for several years, and the range had narrowed unacceptably over that period. The reset has (significantly) widened from 3.97 of gain to 6.28 of gain, resulting in portfolios that would have been rated as Moderately Cautious to be ‘re-rated’. This should be advantageous to advisers who will therefore have greater relevant choice in the areas where there are more customers.