I would suggest the investment objective and the investment strategy formulated to achieve the objective would inform the size of the allocation to each asset class.
For example, if the objective is to match the return of a listed equities index and the strategy is to invest in the constituents of the benchmark index, then the asset allocation might be close to 100% listed equities.
On the other hand, if the objective is to maximise returns for a given level of risk, then the strategy may require allocation to a number of asset classes, depending on the investment strategy formulated by the trustee. Formulating an investment strategy may include considering the role you want each asset class to play in managing the risks your portfolio is exposed to, and forming an opinion on the return that each asset class is expected to produce over the timeframe of the objective.
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I would suggest the investment objective and the investment...
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Dusko Ljubojevic, MD
Dusko Ljubojevic
MD
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