Allocation Strategy, the analytics platform helping institutional investors build more resilient, high-performing portfolios, has secured £1.6 million in funding led by Fuel Ventures. Allocation Strategy provides institutional investors with advanced and comprehensive analytics across every aspect of the allocation process, helping investment teams better evaluate risk and return trade-offs, test portfolios across different market conditions, and build resilient portfolios. The new capital will be used to build and scale the business, further expand Allocation Strategy’s R&D activity, and accelerate the rollout of new solutions for institutional investors.
The raise marks an important step in Allocation Strategy’s mission to equip institutional investors with a more modern and robust set of analytics for asset allocation decision-making, enabling investment teams to tackle complex portfolio questions with forward-looking tools, clearer scenarios, and more intuitive macro insights.
Allocation Strategy was founded by Pavol Povala, Drew Barnden and Michael Chin, former leaders from NBIM, with decades of experience building and operating asset allocation analytics at scale. Having seen the industry’s biggest challenges first-hand, they combined decades of research, proven real-world deployment, and production-grade technology to create Allocation Strategy, a modern, comprehensive platform built to solve these pain points.
When inflation surged in 2021, many institutional allocation tools were exposed as outdated and unprepared for a rapidly shifting macro environment. Existing solutions failed to connect portfolio decisions to the macro forces driving markets, leaving investors working with incomplete, inconsistent or unreliable inputs. Additionally, asset allocation requires complex yet broad toolkits covering multiple angles, which historically haven’t been available from one provider, and building in-house is costly and time-consuming.
Allocation decisions are getting harder to make as the world rapidly changes. The line between traditional and new assets has blurred, as private, alternatives, and crypto markets grow. Geopolitical and macro regimes are also shifting, and old models and assumptions no longer hold. Finally, rapid technological change, driven by AI-advances, presents multi-faceted challenges to investors.
Allocation Strategy was built to solve this gap, delivering more powerful, comprehensive, and trustworthy analytics to help investors build more resilient portfolios. The platform provides state-of-the-art asset allocation technology, built on decades of research and expertise, supporting investors across critical allocation workflows from capital market assumptions and portfolio optimisation to macro risk factors, scenario builders, and model portfolios.
