Needs-Based Allocation is an asset management platform that melds financial planning and asset management in a way that better aligns a client portfolio with their needs and circumstances. We view it as a uniquely custom CIO dashboard and an investment policy statement enhancer. The platform embeds GMO asset allocation insights and expertise and is built on almost a decade of deep research to solve the problem of portfolio construction for individuals.
One of Needs-Based Allocation’s most important insights is that the primary risk an investor faces is not volatility. Rather, it is that they don’t have the resources they need when they need them. Instead of orienting portfolios around traditional concepts of risk aversion and volatility, we orient portfolios around the needs and circumstances of each investor.
Our vision is to help people achieve financial well-being and to help financial advisors build better portfolios for all their clients.
At the 2020 GMO Conference, Martin Tarlie redefined risk in a more intuitive way as “what do you need and when do you need it,” and demonstrated our first application of this Needs-Based Allocation concept.