Nov 07

The importance of asset allocation in Australia…BHB revisited

We’ve all seen various developments in product design from hedge funds to long/short to real return approaches, and then there’s the increased focus on tactical and dynamic asset allocation. You would expect all of this to lead to different drivers of portfolio risk…i.e. away from traditional asset class drivers to market timing, investment selection, and more exotic asset allocations.

So 30 years ago, Brinson, Hood, and Beebower demonstrated that more than 90% of a group of more than 90 US Pension fund portfolio volatility was due to the asset allocation decision…so has this changed or is it any different in Australia? To find out, plus a little more in terms of the importance of active management … click here to download my paper on the importance of asset allocation in Australia.

Alternatively…please click here for the same article at Portfolio Construction Forum

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