Allocation Strategy provides institutional investors with analytics to improve asset allocation, supporting portfolio construction, risk assessment, and scenario analysis to build more resilient portfolios in evolving market conditions.
London-based Allocation Strategy, a company developing analytics tools to support asset allocation and investment decisions, has raised £1.6 million in a funding round led by Fuel Ventures, with participation from angel investors and industry experts.
Periods of market volatility have exposed limitations in many institutional allocation tools, particularly in linking portfolio decisions with underlying macroeconomic drivers. At the same time, asset allocation has grown more complex as asset classes converge, private and alternative markets expand, geopolitical conditions evolve, and advances in AI reshape investment decision-making.
Allocation Strategy was developed to address these challenges by providing a more comprehensive and reliable analytics framework for portfolio construction and risk assessment. The platform supports key asset allocation workflows, including capital market assumptions, portfolio optimization, macro risk analysis, scenario modelling, and model portfolios, helping institutional investors better assess risk and return trade-offs.
Pavol Povala, CEO of Allocation Strategy, said the platform is intended to give investment teams a stronger analytical foundation for asset allocation decisions, supporting processes from expected return assumptions through to scenario analysis and portfolio construction.
The company was founded by Pavol Povala, Drew Barnden, and Michael Chin, who bring extensive experience in developing and operating asset allocation analytics at scale.
The new capital will be used to scale the business, expand research and development, and accelerate the rollout of new solutions for institutional investors.