The importance of strategic asset allocation

Santacruz, Lujer (2013) The importance of strategic asset allocation. Journal of Business and Economics, 4 (3). pp. 242-247. ISSN 2155-7950

Abstract

This paper examines the impact of strategic asset allocation on total returns of investment portfolios. It aims to confirm the results of previous studies using US investment data that found strategic asset allocation dominating the other investment decisions namely market timing and security selection. Using data from Australian managed funds, strategic asset allocation is found to account for most of the total returns in terms of magnitude and around 88% of the variability in total portfolio returns. Suggestions are made to expand the scope of the study to be able to generate more conclusive results.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 01 Aug 2013 04:36
Last Modified: 18 Dec 2017 06:46
Uncontrolled Keywords: asset allocation; performance attribution; financial planning; Australia
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150202 Financial Econometrics
14 Economics > 1402 Applied Economics > 140207 Financial Economics
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970114 Expanding Knowledge in Economics
B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900102 Investment Services (excl. Superannuation)
URI: http://eprints.usq.edu.au/id/eprint/23753

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