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
Permalink -

https://research.usq.edu.au/item/q39zy/asset-allocation-theory-and-practice-in-australian-investment-management-reasons-for-the-dichotomy

Log in to edit
  • 1715
    total views
  • 17
    total downloads
  • 1
    views this month
  • 0
    downloads this month

Export as

Related outputs

Asset class return connectedness during the last two global shocks GFC and Covid
Santacruz, Lujer. 2021. "Asset class return connectedness during the last two global shocks GFC and Covid." 2021 Financial Planning Academics Forum. Brisbane, Australia 26 Nov 2021
Toward a practical measure of firm risk-taking: revisiting Bowman’s paradox
Santacruz, Lujer. 2018. "Toward a practical measure of firm risk-taking: revisiting Bowman’s paradox ." 31st Australasian Finance and Banking Conference. Sydney, Australia 13 - 15 Dec 2018 Sydney, Australia.
Wealth management and financial advisory services in the Asia-Pacific region
Santacruz, Lujer. 2017. "Wealth management and financial advisory services in the Asia-Pacific region." 8th Global Business and Finance Research Conference. Taipei, Taiwan 26 - 28 Oct 2017
Measures of firm risk-taking: revisiting Bowman’s paradox
Santacruz, Lujer. 2020. "Measures of firm risk-taking: revisiting Bowman’s paradox." Managerial Finance. 46 (3), pp. 421-434. https://doi.org/10.1108/MF-09-2019-0466
Wealth management and financial advisory services in the Asia-Pacific region
Santacruz, Lujer. 2018. "Wealth management and financial advisory services in the Asia-Pacific region." The Journal of Wealth Management. 21 (3), pp. 95-115. https://doi.org/10.3905/jwm.2018.1.066
Asset allocation: analysis of theory and practice in the Australian investment management industry
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.
Dealer group or financial planning group? A brief technical note
Santacruz, Lujer. 2011. "Dealer group or financial planning group? A brief technical note." Australasian Accounting Business and Finance Journal. 5 (2), pp. 127-134.
Dealer group or financial planning group?
Santacruz, Lujer. 2011. "Dealer group or financial planning group?" Financial Planning. 23 (10), pp. 42-45.
Strategic asset allocation and portfolio performance
Santacruz, Lujer. 2012. "Strategic asset allocation and portfolio performance." 18th International Business Research Conference. Las Vegas, NV. United States 28 - 30 Oct 2012 Australia.
Corporate risk returns and economic outlook, Australian data
Santacruz, Lujer. 2016. "Corporate risk returns and economic outlook, Australian data." 29th Australasian Finance and Banking Conference (AFBC 2016). Sydney, Australia 14 - 16 Dec 2016 Sydney, Australia.
Asset allocation theory and practice in Australian investment management
Santacruz, Lujer. 2016. "Asset allocation theory and practice in Australian investment management." The Journal of Wealth Management. 19 (2), pp. 47-67.
Asset allocation: analysis of theory and practice in the Australian investment management industry
Santacruz, Lujer. 2015. Asset allocation: analysis of theory and practice in the Australian investment management industry. PhD Thesis Doctor of Philosophy. University of Southern Queensland.
Financial planning value proposition: Laying the groundwork based on clients’ perspective
Santacruz, Lujer and Brimble, Mark. 2014. "Financial planning value proposition: Laying the groundwork based on clients’ perspective." 3rd Annual Personal Finance and Investment Symposium. Adelaide, South Australia 11 Nov 2015
What do academics think of asset allocation theory?
Santacruz, Lujer. 2014. "What do academics think of asset allocation theory?" Bhuiyan, Md. Mahbubul Hoque (ed.) World Business, Finance and Management Conference (WBFM 2014): Research for Progress. Auckland, New Zealand 08 - 09 Dec 2014 Melbourne, Australia.
The importance of strategic asset allocation
Santacruz, Lujer. 2013. "The importance of strategic asset allocation." Journal of Business and Economics. 4 (3), pp. 242-247.
Investor risk tolerance and general economic mood
Santacruz, Lujer. 2008. "Investor risk tolerance and general economic mood." Hoque, Mohammad Ziaul (ed.) 9th International Business Research Conference. Melbourne, Australia 24 - 26 Nov 2008 Melbourne, Australia.
Dealer group or financial planning group? A case for changing the industry terminology
Santacruz, Lujer. 2010. "Dealer group or financial planning group? A case for changing the industry terminology." Jahan, Nuha (ed.) 13th International Business Research Conference. Melbourne, Australia 22 - 24 Nov 2010 Melbourne, Australia.
Personal financial planning in Australia: an industry analysis
Santacruz, Lujer and Lukashenok, Aleksej. 2009. "Personal financial planning in Australia: an industry analysis." Benson, Karen and Ding, David (ed.) AsianFA 2009: Asian Finance Association International Conference. Brisbane, Australia 30 Jun - 03 Jul 2009 Brisbane, Australia.
Effect of general economic mood on investor risk tolerance - implications for financial planning
Santacruz, Lujer. 2009. "Effect of general economic mood on investor risk tolerance - implications for financial planning." JASSA. 2009 (1), pp. 35-42.
Are benchmark asset allocations for Australian private investors optimal?
Santacruz, Lujer and Phillips, Peter J.. 2009. "Are benchmark asset allocations for Australian private investors optimal?" The Journal of Wealth Management. 12 (2), pp. 60-70. https://doi.org/10.3905/JWM.2009.12.2.060
Optimality of financial planning clients' strategic asset allocation
Santacruz, Lujer and Phillips, Peter J.. 2007. "Optimality of financial planning clients' strategic asset allocation." Moshirian, Fariborz (ed.) 20th Annual Australasian Finance and Banking Conference (AFBC 2007). Sydney, Australia 12 - 14 Dec 2007 Sydney, Australia.
Direct share ownership as a diffusion phenomenon
Santacruz, Lujer. 2007. "Direct share ownership as a diffusion phenomenon." Hoque, Mohammad Ziaul (ed.) 7th International Business Research Conference. Sydney, Australia 03 - 06 Dec 2007 Melbourne, Australia.