Tag Archive | Asset Allocation

Positioning Portfolios for An Environment of High Inflation

Investors should adopt inflation protection as inflation shows few signs of moderating anytime soon and central banks are tightening monetary policy aggressively. Treasury Inflation-Protected Securities (TIPS) can help position portfolios for an environment of higher inflation and lower growth. TIPS protect against inflation in two ways. First, the principal value of TIPS is indexed to […]


Asset Allocation Framework for Individual Investors 高净值人群资产配置

The global financial crisis changed strategic asset allocation framework, as investors are more risk conscious and especially mindful of market liquidity and the importance of credit risk in sovereign bond markets, even in developed economies. Determinants of asset allocation decision for long-term institutional investors are generally return factors, volatility factors, risk tolerance (perception of risk), […]

Allocation in Hedge Fund of Funds 对冲基金配置

One of the main reasons that institutional investors include hedge funds in their portfolios is the expected diversification benefits with existing array of investment opportunities. In the U.S., institutions such as endowments and foundations are still increasing the allocation to hedge funds, despite the fact that hedge funds in general have underperformed in recent years. […]

Risk Allocation, Asset Allocation, Tracking Error Allocation 风险预算 资产配置 跟踪误差配置

Risk allocation emerged in the late 1900s, in response to concerns about the level of risk being accepted in a portfolio. The process involves setting up a plan for how much an investor plans on taking with the long-term investments. It is based on one’s estimation of multiple parameters over different time frames with different […]

Naive 1/N Portfolio vs.Sophistication and Optimization 最优组合和资产配置

Optimal diversification is one of the key insights of modern portfolio theory, however, due to estimation errors, theory-based portfolio strategies are not as good as one once thought; under some circumstances, the difference between sophisticated models and naive strategy is not statistically significant. Naive diversification is instinctive common sense division of a portfolio, whereby an […]