Asset allocation: analysis of theory and practice in the Australian investment management industry

Santacruz, Lujer (2015) Asset allocation: analysis of theory and practice in the Australian investment management industry. [Thesis (PhD/Research)]

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Asset allocation is the decision on how much of the investment portfolio to place in each of the broad asset classes (e.g. cash, fixed interest securities, property, equities). It is a key decision area in the investment management industry, where professional investors manage pooled investments. The present research examined any dichotomy between theory and practice of asset allocation in the Australian investment management industry. It surveyed the available body of research on asset allocation consisting of Modern Portfolio Theory from the seminal Markowitz mean-variance formulation to subsequent research strands. It utilised a combination of qualitative and quantitative methods to examine the level of awareness and usage of asset allocation theories and theory-based methods among investment management industry practitioners. The present research established that while there is a high level of awareness, there is a low level of usage of asset allocation theory and theory-based methods in the industry. Structural Equation Modelling identified perceived usefulness as having the strongest influence on usage. Recommendations mostly revolving around improving the interaction between academe and industry are made that may help reduce the theory-practice dichotomy. Limitations of the present research are discussed as well as future areas for related research.

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Item Type: Thesis (PhD/Research)
Item Status: Live Archive
Additional Information: Doctor of Philosophy (PhD) thesis.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Supervisors: Krishnamurti, Chandrasekhar; Elston, Frank
Date Deposited: 12 Oct 2016 02:24
Last Modified: 12 Oct 2016 02:24
Uncontrolled Keywords: asset allocation
Fields of Research : 14 Economics > 1402 Applied Economics > 140207 Financial Economics

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