The report should explain why the advisor has selected the recommended asset allocation. Why is this important? The management of a client’s financial needs and assets are brought together within a portfolio structure. The portfolio structure combines the management of the asset allocation needed to secure financial needs both now and in the future and the management of asset allocation to manage risk and return.
The reason for the recommended portfolio structure between low risk assets and equities should therefore be provided, as should any allocation due to the transitional nature of the portfolio. There are in fact a number of possible components of asset allocation. There is the basic structure needed to manage financial needs. There is the allocation of the components of the basic structure that would be recommended by the advisor. There is the allocation that the advisor would recommend for a more aggressive or a more conservative investor. 
Transitional means that the initial recommended allocation may actually be different from the intended recommended allocation. Markets may be too high to invest all available funds, there may be an excess allocation in an illiquid asset which cannot be immediately sold etc. Future capital may be earmarked to bring the portfolio to its recommended allocation and therefore transaction costs and other realisation risks can be avoided. Portfolio planning may envisage a change in allocation as retirement draws near. It could be that savings from income will be sufficient to right the portfolio imbalance, in which case it would not make sense to make immediate costly changes.
Importantly comments regarding portfolio structure should relate to overall asset allocation as well as the allocation of individual portfolios. For example, while the pension portfolio and the personal portfolio may be run as separate portfolios, their asset allocations should be combined to come up with one representative of the client's total financial needs, risk aversions and their interaction with the advisors own investment discipline. Whether or not your advisor reports this information to you, it should form an integral part of the portfolio construction, portfolio planning and portfolio management process. Every advisor has to construct a portfolio to meet your needs if that is your objective. Every advisor should have their own preferred allocation and their own preferred allocation for each type of investment objective. Because every investor has a different attitude to risk, it is therefore only logical that an advisor should be able to adjust the recommended allocation to account for risk aversion.  | 
