London-based fintech firm Allocation Strategy develops quantitative asset allocation analytics that help institutional investors make forward-looking portfolio and risk decisions, and has raised £1.6 million in a round led by Fuel Ventures, with additional participation from angel investors and industry experts.
- Allocation Strategy was founded in 2023 by Pavol Povala, Drew Barnden and Michael Chin. The firm develops asset allocation analytics used by institutional investors such as pension funds, sovereign wealth funds, asset managers and hedge funds.
- The company builds quantitative models that support decisions on expected returns, portfolio construction, risk analysis and macroeconomic scenario testing. Its work is centred on connecting asset allocation choices to the economic assumptions embedded in market prices, rather than relying on historical averages.
- Its core product is a proprietary modelling framework, the AS Asset Market and Macro Model (ASAMM), which applies present-value relationships to derive market-implied expectations for growth, inflation and risk across asset classes and time horizons. Using a single framework allows the firm to produce internally consistent outputs across public and private markets.
- The platform generates forward-looking return projections, risk distributions and macro scenarios, and defines economically meaningful risk factors that can be used for portfolio analysis and attribution. The technology is delivered through a cloud-based system with automated deployment and data pipelines, enabling regular model updates and integration into institutional investment processes.
Details of the deal
- The firm will use the fresh funding to build and scale the business, further expand its R&D activity, and accelerate the rollout of new solutions for institutional investors, supporting growth and broader global adoption of its asset allocation platform.
“Portfolio decisions are more complex than ever, and institutional investors need stronger tools to understand risk and build resilience over time. Allocation Strategy is designed to give investment teams a clearer analytical foundation for asset allocation decisions — supporting everything from expected return inputs to scenario analysis and portfolio construction," claims Pavol Povala, CEO of Allocation Strategy.
