Asset allocation decision

Asset allocation decision

The decision regarding how an institution's funds should be distributed among the major classes of assets in which it may invest.
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Once we have made the asset allocation decision, then we do security selection using a bottom-up model," explained Hussain.
We use ALM to address the asset allocation decision for a general long-term liability with an investment guarantee.
8) Some commentators advocate making the asset allocation decision on an aftertax basis.
Section 404(c) was added to ERISA in October 1992 with the intent of relieving the employer from responsibility for the employee's asset allocation decision, but employers found it difficult to comply with all of the requirements.
Despite the complexities, the ultimate success or failure rests to a surprising degree on just one decision: the asset allocation decision.
Early influential studies by Brinson, Hood, and Beebower (1986), Brinson, Singer, and Beebower (1991), and a more recent update by Ibbotson and Kaplan (1999), show that the asset allocation decision is the key determinant of portfolio returns.
But, he asked, "Who should make the asset allocation decision, and how?
The report also recommended enhancing the processes for asset allocation decision making, monitoring soft dollars and making real estate investments.
FTJFC is a turnkey asset management provider, enabling advisors to efficiently manage their own model portfolios or outsource to one of 8 third party investment managers - each with a unique approach to the asset allocation decision.
According to the research authors (Thomas, Bob Collie, chief research strategist, and Mike Sylvanus, senior investment strategist), the foundation of a strategic asset allocation decision is a trade-off between risk and reward.
Richard Tang, CEO said, 'Ability to access China efficiently has become increasingly relevant for international investors when making asset allocation decisions for their global portfolios.