The importance of strategic asset allocation

Article

Santacruz, Lujer. 2013. "The importance of strategic asset allocation." Journal of Business and Economics. 4 (3), pp. 242-247.
Article Title

The importance of strategic asset allocation

ERA Journal ID200920
Article CategoryArticle
Authors
AuthorSantacruz, Lujer
Journal TitleJournal of Business and Economics
Journal Citation4 (3), pp. 242-247
Number of Pages6
Year2013
Place of PublicationBradenton, FL. United States
ISSN2155-7950
Web Address (URL)http://www.academicstar.us
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.

Keywordsasset allocation; performance attribution; financial planning; Australia
ANZSRC Field of Research 2020350208. Investment and risk management
350203. Financial econometrics
380107. Financial economics
Byline AffiliationsSchool of Accounting, Economics and Finance
Institution of OriginUniversity of Southern Queensland
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