Sector allocation

Sector allocation

Investment of certain proportions of a portfolio in certain sectors. See: Industry allocation.

Sector Allocation

The act or practice of including securities in different industries in one's portfolio. This is done to reduce systemic risk. For example, if one includes both Industry A and Industry B stocks in one's portfolio, and most Industry A companies go bankrupt, this will not necessarily affect Industry B stocks. Industry allocation thus increases the possibility of making a profit, or at least avoiding a loss. This may also reduce the expected return on a portfolio, but it depends on the level and type of diversification. In general, the broader the industry allocation, the less risk and the less return. See also: Horizontal diversification, Vertical diversification.
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The AIS Index tracks the notional performance of an algorithmic US large-cap sector-rotation strategy, harnessing the power of big data analytics to make sector allocation decisions in a tradable and systematic way.
The fund is actively managed, employs a risk-controlled approach, and seeks to outperform the broad-investment-grade US fixed income market through disciplined security selection, sector allocation, and duration decisions.
Markaz attributes gains to better stock selection and conservative sector allocation, which kept the volatility and downside risk range bound within each of the countries invested.
Government is focused to improve the irrigation system of the country and 87% amount from the total water sector allocation will be spent on small medium dams, canals, lining of irrigating channels and improvement of existing irrigation system of the country.
Finally, given the variable nature of top-down diversification opportunities, investors who use mainly country allocation or mainly sector allocation may find their GCC opportunities restricted from time to time, while those who work across country and sector borders in stock selection may be better positioned at reaping the region's diversification benefits.
Using a sector allocation approach, individuals in a sector are assured of a set percentage of the hard quota.
The Journal of Index Investing brings you the latest innovations in Exchange-Traded Funds (ETFs), indexes and mutual funds, offering practical, rigorous research and analysis on products, sector allocation and investment strategies.
Referring to the defense sector allocation in the budget, they said adequate funds had been allocated under the head enabling the armed forces of the country to counter external and internal security threats.
There is no gainsaying that the strong performance posted by the fund since its inception has always been borne out of the fund managers disciplined and focused approach to sector allocation and security selection, said Williams.
The portfolio managers lead the teams, and their focus is on portfolio structure, including sector allocation, duration weighting and term structure decisions.
2005 was a tough year for the stock market, but RMK Select Value Fund's stock selection and sector allocation techniques used in assembling the portfolio resulted in consistent rankings as one of the top performing funds during the year," stated Walter A.
The Fund expects that its relative performance will normally be influenced primarily by stock selection, rather than by differences in sector allocation.