Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon. The three main asset classes – equities, fixed-income, and cash and equivalents – have different levels of risk and return, so each will behave differently over time.
Three investors reflect on the what lies ahead highlighting a buoyant 2021 but challenges beyond. Their suggestions include allocations to real assets and diversifying out of traditional fixed income as they navigate portfolio construction considerations in a new investment paradigm.
Sarah RundellDecember 16, 2020
NZ Super's recent five-year reference portfolio review saw much debate over currency risk, with the discussion elevating to the board - an unusual situation for the fund whose internal IC usually makes recommendations to the board.
Amanda WhiteNovember 25, 2020
As impact investing gains momentum, the winning entries of a McGill University international investment challenge have shown the pension industry a thing or two about how to holistically tackle a triple mandate that includes impact.
Amanda WhiteNovember 10, 2020
A U-shaped recovery is the most likely economic outcome in the US for the next two years, but stagflation has a higher than anticipated chance of occurring according to a new paper about scenario analysis co-authored by State Street and GIC researchers. The study revolutionises scenario analysis by reorienting it towards a path.
Amanda WhiteNovember 6, 2020
The Florida State Board of Administration has made some strategic moves to take advantage of opportunities in the dislocation, including in private equity, distressed debt and active listed equities.. But CIO, Ash Williams, is concerned about the underlying real economy.
Amanda WhiteOctober 6, 2020
The Canadian model, revered world over for its supreme pension management, is not low cost despite that being one of its oft-described traits. New research by CEM Benchmarking and McGill University shows that these funds are cost efficient, rather than being low cost. Their aim is to be high net performers, not low cost.
Amanda WhiteSeptember 3, 2020
Meticulous planning for the next market crash, and an eye on liquidity, meant IMCO was well positioned to invest, particularly in credit, when the opportunity arose. The fund continues to use its agility to its advantage and is now looking for opportunities in private markets.
Amanda WhiteAugust 17, 2020