Share this page | Email | Contact Us

Special Report on

Dynamic asset allocation Definition

dynamic asset allocation definition special research report Photo by
In the hierarchy of investment decisions, asset allocation is at or near the top of the list of variables that are strategically relevant for diversified portfolios. There are a number of studies telling us so, starting with the influential Brinson study from 1986— "Determinants of Portfolio Performance" —and its 1991 update. The basic message: asset allocation matters. Deciding how much it matters, why it matters, and under what conditions has spawned a fierce debate over the years, along with a small library of research analyzing the details. A paper a few years back from Ibbotson Associates (now a part of ...
For example, say an investor has a $100 portfolio, a floor of $90 (price of the bond to guarantee his $100 at maturity) and a multiplier of 5 (ensuring protection against a drop of at most 20% before rebalancing the portfolio). Then on day 1, the writer will allocate (5 * ($100 – $90)) = $50 to the risky asset and the remaining $50 to the riskless asset (the bond). The exposure will be revised as the portfolio value changes, i.e. when the risky asset performs and with leverage multiplies by 5 the performance (or vice versa). Same with the bond. These rules are predefined and agreed once and for all during the life of the product.
of the Currency reported that 56% of the mortgages modified during the first 6 months of 2008 re-defaulted after six months. MarketWatch    Modifications will save some from foreclosure but this crisis is just too severe to save most facing difficult choices, especially in markets where the current valuations are significantly less than the outstanding mortgage.  Mergers do not result in job creation.  Bank of America announced after the close yesterday that it will eliminate up to 35,000 "redundant" jobs created by its recent acquisition of Merrill Lynch and due to the recessionary environment, ... market research, surveys and trends
Focus on asset allocation: strategic vs. tactical |
The reference here is to the percentages that are allocated to fixed income (bonds), equity (stocks) and cash in a given portfolio. One can go a little further and overlay a geographical allocation among various economies. As portfolios grow, other asset classes such as real estate, private equity and alternative investments (hedge funds) can be introduced. This is in search of better returns, more diversification and lower risk.  This is for illustration only and not for use in an actual portfolio. Inspired by the “The Ibbotson Associates Moderate Asset Allocation Total Return Index”, published by the Chicago Board Options ... market research, surveys and trends


Third Annual Liability Driven Investing (LDI) Poll: Globally, LDI ...
Nov 17, 2009 ... More than one-third (37 percent) of organizations polled ... $30 million to more than US $5 billion in assets. ... when making asset allocation decisions, and varies from plan to plan depending on funding status and the ... Thus LDI is a dynamic strategy, one that evolves as funding ... industry trends, business articles and survey research
The Asset Allocation Debate: Provocative Questions, Enduring Realities
$83 billion for the Dow Jones Wilshire 5000 Index as of December 31, 2006. Figure 3. Percentage of balanced funds .... about the wisdom of dynamic asset allocation. ... Does Asset Allocation Policy Explain 40, 90, or 100. Percent of Performance? ... funds, the policy return is, by definition, not observed ... industry trends, business articles and survey research
Where we've been and where we're going
NEW YORK (MarketWatch) -- The midpoint of 2010 has arrived and it's time to take stock of what we've seen and where we're going. The first six months of the new decade have been anything but boring as we've witnessed events that may forever change the face of free-market capitalism. We traversed the depths of despair and the height of hope and the world is on edge as we ready for the back nine. The following topics were offered as our Ten Themes in early January; let's recap them and update where we stand. The stock market is the world's largest thermometer and the single biggest proxy of our ... market trends, news research and surveys resources


Integrating Market Risk and Credit Risk: A Dynamic Asset ...
Definition 1 The cumulated cash-flow process D of a defaultable zero-coupon bond DZB = (F, .... market risk) in the framework of dynamic asset allocation. ... technology research, surveys study and trend statistics
Paying to Save: Tax Withholding and Asset Allocation Among Low ...
Procrastinators, by definition, delay saving, and thus have difficulty accumulating assets ... erences and asset allocation to detect dynamic inconsistency. ... technology research, surveys study and trend statistics
Advanced Theory and Methodology of Tactical Asset Allocation
dynamic trading rule, dynamic asset allocation is mostly used for portfolio insurance. ... Arnott and Fabozzi (1988, p.4) defines TAA in this way: ...
Need a good definition for "Asset Class" | LinkedIn Answers | LinkedIn
I am working on a writing project and would like to get a really good, precise, easily understandable definition of what an "asset class" is. I have seen that lawyers, CPAs, and various types of wealth management or financial planning professionals sometimes seem to have slightly different things in mind when they use the term. Jim Brandon's answer is a good one, but how would you account for less conventional asset classes in the context of assessing or understanding personal or family wealth (so moving a bit away from the strictly accounting definition)...for example, Hedge Funds, or art work, or ownership of a private ...
WikiAnswers - Business Plans Questions including "Do you need a ...
A business plan is a very important part of creating a business. This plan includes things such as marketing strategies, an analysis of the competition, development plans, operation and management plans, an explanation of your legal structure, and financial projections. All topics regarding reading, writing, or analyzing business plans should go here. Total questions 39000 Supervisors Become a Supervisor ID3541958706 wrote the first answer to What are the limitation and advantages of Planning 37 minutes ago ID3642424194 asked What are the limitation and advantages of Planning and said it was different from What are the ...