Asset classes


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Asset classes

Categories of assets, such as stocks, bonds, real estate, and foreign securities.

Asset Class

Different types of investments that behave similarly and are subject to most of the same market forces. Many analysts believe that there are three main assets classes: equity securities or stocks, fixed-income securities or bonds, and cash equivalents. Some analysts would also include commodities, real estate, and derivatives. Including a variety of asset classes is important to constructing or maintaining a diverse portfolio.
References in periodicals archive ?
Several concepts underlie the use of asset allocation including the relationship of risk and return, the risk of different asset classes, the level of correlation among assets and time diversification.
Based on these changes - you might say, ``I don't want more than 25 percent in equity'' - the analysis can be conducted again with the limitation placed on equity; alternative asset classes are then recommended to replace the higher equity allocation.
Instead, they concentrate on fact-based valuations of various asset classes and make their adjustments accordingly.
We believe non-correlated alpha can be captured by tactical investment across multiple asset classes and investment styles.
Half of the ten asset classes witnesses a decline in net sentiment over the last year, with the largest loosers being for Eurozone with -30 percentage points, UK shares -12 percentage points and Emerging market shares -9 percentage points.
Mean-variance optimization is a mathematical process that requires three inputs: (1) expected return of each asset, (2) expected risk of each asset and (3) the correlation coefficient of each pair of asset classes.
Investor outlooks were not uniform across asset classes and sectors.
British based financial services provider and part of the government backed Lloyds Banking Group, Lloyds Bank on Thursday revealed that overall change for asset classes increased three percentage points, the biggest increase in 12 months.
Shambo uses Vanguard, because the company offers funds covering 22 different asset classes, allowing him to "cover my client's overall broad portfolio allocation needs, ranging from real estate investment trusts to small-cap or international funds.
Of particular interest to many taxpayers are asset classes dealing with office furniture and fixtures: Asset Class 00.