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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Josette Rizk, client director, Institutional Sales, Invesco Middle East and Africa, said: "We are observing an interesting shift in terms of both geographic and sector allocation from the Middle East.
Nazim has been working closely with foreign investors, broker dealers and local fund managers to give investment recommendations on sector allocation and stock selection.
According to budget documents, the government has increased local government and community sector allocation by 36% as compared to the original allocation of Rs4.63 billion for the current fiscal year.
School education has been allotted funds of Rs178.618bn, with Rs15.15bn allotted for development under the ADP, whereas the health sector allocation is Rs13.5bn.
As a result of the expansion, changes have been made to the sector allocation plan.
The guidelines suggest that water sector allocation should be increased to 20 per cent of the budget, he said.
By sector allocation, Social Services accounts for 36.7 percent of the entire budget, reaching P1.377 trillion.
Following a series of acquisitions that led to diversification of ENBD REIT's portfolio in 2017, current sector allocation stands at 64% offices, 20% residential and 16% alternative -- including schools, student accommodation and retail.
An amount of Rs 33,481 million, as much as 52 per cent of total water sector sector allocation, has been allocated during financial year 2018-19 for construction of large and medium dams including Rs 23,680 million for Diamer Bhasha Dam and Rs 7,825 million for small, check and delay action dams all over Pakistan.
The health sector allocation statement was as follows: EGP 31.6bn for wages; EGP 12.4bn for the purchase of goods and services; EGP 120m in interest; EGP 5.22bn for subsidies, grants, and social advantages; EGP 1.24bn in other expenses; and EGP 11.15bn for investments.
Pakistan is facing acute water scarcity requiring special interventions and to conserve water and its augmentation during 2018-19, water sector allocation has been enhanced from Rs.36 billion to Rs.
By sector allocation, social services account for P1.4 trillion of this year's budget.