Current Asset Allocation

In the last coupleof days, I have been calculating the asset allocation for both my RRSP and non-registered accounts. I saw this as a first step towards having a global asset allocation strategy.


I detailed the asset allocation in two independent categories: geographic allocation and asset classes. I only looked at those accounts I consider there for investment, so this excludes the house, as well as my day-to-day bank account. But it includes my emergency fund and secondary bank accounts (including those in US currency).


In the geographic allocation, my assets are divided in the following way:

• Canada: 78%
• United States: 7%
• Europe: 9%
• Asia/Pacific: 6%
• Others: 1%

As you can see, I am overweigth in Canada. I expected this, as this is one of the reasons I erformed this exercise.

As for asset classes, the allocation is:

• Stocks: 58%
• Income Thrusts: 12%
• Bonds: 7%
• Cash: 16%

This, however, was a mild surprise. I would have thought I had more stocks and less cash. Of course, including my emergency funds modified the balance quite a bit. In fact, it results in about 50% cash in my non-registered assets.

Already, I can see that I need more international exposure in my stocks. I have already modified the allocation of my new contributions for my RRSP so that a bigger share of new contributions go towards the international part of my portfolio.