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.