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

Paper

Santacruz, Lujer. 2014. "Asset allocation: analysis of theory and practice in the Australian investment management industry." 27th Australasian Finance and Banking Conference (AFBC 2014). Sydney, Australia 16 - 18 Dec 2014 Sydney, Australia.
Paper/Presentation Title

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

Presentation TypePaper
Authors
AuthorSantacruz, Lujer
Journal or Proceedings TitleProceedings of the 27th Australasian Finance and Banking Conference (AFBC 2014)
ERA Conference ID50275
Number of Pages98
Year2014
Place of PublicationSydney, Australia
ISBN9780987312761
Web Address (URL) of Paperhttps://papers.ssrn.com/sol3/Jeljour_results.cfm?form_name=journalbrowse&journal_id=2379739&Network=no&lim=false
Conference/Event27th Australasian Finance and Banking Conference (AFBC 2014)
Australasian Finance & Banking Conference
Event Details
27th Australasian Finance and Banking Conference (AFBC 2014)
Event Date
16 to end of 18 Dec 2014
Event Location
Sydney, Australia
Event Details
Australasian Finance & Banking Conference
AFBC
Abstract

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 aims to examine any dichotomy between theory and practice of asset allocation in the Australian investment management industry. Studying asset allocation theory and practice in relation to one another may lead to finding ways to improve both. The present research identifies gaps between theory and practice and the reasons for their existence and make recommendations that may help reduce the gap. It surveys the available body of research on Modern Portfolio Theory from the seminal Markowitz mean-variance formulation to subsequent research strands. The present research utilises 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.

Keywordsasset allocation
ANZSRC Field of Research 2020380107. Financial economics
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Byline AffiliationsSchool of Commerce
Institution of OriginUniversity of Southern Queensland
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