Asset allocation theory and practice in Australian investment management: reasons for the dichotomy

Santacruz, Lujer (2016) Asset allocation theory and practice in Australian investment management: reasons for the dichotomy. The Journal of Wealth Management, 19 (3). pp. 31-48. ISSN 1534-7524


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). An online survey among practitioners established that while there is a high level of awareness, there is a relatively low level of usage of asset allocation theory and theory-based methods in the industry. The reasons for this dichotomy were examined using a conceptual model based on those commonly used in research on adoption of an innovation or a new technology. Applying Structural Equation Modelling on the survey data, perceived usefulness appears to have the strongest influence on usage followed by facilitating conditions. The two other theorised factors, perceived ease of use and external influence, appeared insignificant. Limitations of the study are discussed as well as future areas for related research.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this record cannot be displayed due to copyright restrictions. Companion article to that cited in record #29857.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 04 Nov 2016 02:46
Last Modified: 04 Nov 2016 02:46
Uncontrolled Keywords: asset allocation, modern portfolio theory
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
14 Economics > 1402 Applied Economics > 140207 Financial Economics
Socio-Economic Objective: E Expanding Knowledge > 97 Expanding Knowledge > 970114 Expanding Knowledge in Economics
Identification Number or DOI: 10.3905/jwm.2016.19.3.031

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