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

Article

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. https://doi.org/10.3905/jwm.2016.19.3.031
Article Title

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

ERA Journal ID19140
Article CategoryArticle
Authors
AuthorSantacruz, Lujer
Journal TitleThe Journal of Wealth Management
Journal Citation19 (3), pp. 31-48
Number of Pages18
Year2016
Place of PublicationNew York, NY. United States
ISSN1520-4154
1534-7524
Digital Object Identifier (DOI)https://doi.org/10.3905/jwm.2016.19.3.031
Web Address (URL)https://jwm.pm-research.com/content/19/3/31
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). 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.

Keywordsasset allocation, modern portfolio theory
ANZSRC Field of Research 2020350208. Investment and risk management
380107. Financial economics
Public Notes

Companion article to that cited in record #29857.

Byline AffiliationsSchool of Commerce
Institution of OriginUniversity of Southern Queensland
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