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.
In its latest position paper, Australia's Future Fund outlines its investment approach in a new investment landscape characterised by the end of 60:40 portfolios, inflation, declining corporate earnings and climate change - amongst others.
Sarah RundellNovember 25, 2021
Being ready for anything, a focus on risk management, using more leverage and opportunities in technology are key characteristics of the portfolio of the future according to investors who spoke at the Fiduciary Investors Symposium recently.
Amanda WhiteNovember 23, 2021
The rising popularity of private assets has made liquidity risk a growing concern for institutional investors, who need to carry enough liquidity for possible downturns, but avoid the opportunity cost of carrying too much, says Michelle Teng, vice president of the Institutional Advisory and Solutions group at PGIM.
Ben HurleyNovember 18, 2021
In a complex investment environment, investors should get back to basics and focus on corporate cash flows, scarcity value and the impact of inflationary pressure on profits. Simplicity will serve investors well in the coming years.
Sarah RundellNovember 2, 2021
In the three years since formation Border to Coast has proven success on both sides of the ledger, providing significant cost savings for its underlying partner funds and giving them access to investments they would not have dreamed of as single entities. The passionate CIO of Border to Coast, Daniel Booth, talks to Amanda White about the fund’s success and what is next in its quest for constant improvement.
Amanda WhiteOctober 19, 2021
America’s university endowments are reporting blistering returns thanks to soaring equity markets and their large venture allocations. Washington University’s managed endowment pool is an outstanding performer, returning a whopping net 65 per cent for the fiscal year 2020-21 and nearly doubling its size to $15.3 billion. CIO Scott Wilson explains how they did it.
Sarah RundellOctober 14, 2021
In his first interview since becoming CIO, Michael Wissell tells Sarah Rundell about the plans for developing HOOPP's portfolio, which includes a focus on climate change, inflation and innovation while always keeping an eye on the total portfolio.
Sarah RundellOctober 12, 2021
Allocations to real assets by asset owners globally are increasing in light of the outlook for inflation, but the performance of the entire asset class won’t be linear nor will it be predictable, Harsh Parikh, a principal in the institutional advisory and solutions group at PGIM explains.
Matthew SmithSeptember 28, 2021