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...“By and large, many institutional investors are overallocated to private equity when benchmarked by their target portfolio allocation strategy,” said Christine Patrinos, a Boston-based partner at Monument...
...At 39.9 per cent of assets by June 2023, Princo’s investment in private equity was double the average allocation for large US university endowments....
...Peak XV is currently holding its portfolio at what it described as a conservative 30 to 40 per cent discount to its last round’s price. “I think we are past the lows,” Singh said....
...The portfolio shake-up, which was confirmed after a scheduled asset allocation review, will bring the California-based plan into line with other big retirement systems in the US, including Calstrs, which...
...For example, an investor could own a long-short value factor that would be long a portfolio of cheap stocks by some value measure while being short a portfolio of expensive stocks....
...However, Jim Masturzo chief investment officer, multi-asset strategies, at Research Affiliates, the smart beta index specialist, urges patience....
...These countries’ bonds were transformed into assets that passive funds would be compelled to buy, and on which active managers would need to spend large amounts of portfolio risk to avoid....
...This classic 60/40 portfolio — a mainstay of conservative asset management — is the mullet hairstyle of the investment world....
...As an international asset management centre, UK asset managers should be able to capture this growth....
...I believe in passive investing but then attempt my own asset allocation. Madness. I should just decide on my weightings (with automated rebalancing) and walk away....
...Forward price-to-earn ings ratios — a commonly used valuation metric — of stocks on the MSCI UK index are 47 per cent lower than those on the US equivalent, according to asset manager Schroders....
...Also: “Summary statistics show higher autocorrelations and positive (or less negative) skew compared to traditional assets.”...
...Third, a maturation of financial markets including the spread of derivatives, lower entry barriers and the institutionalisation of emerging markets as an asset class....
...Asness: First, at no point did I ever say 100 per cent equities won’t be a good long-term portfolio....
...Investors could also look at increasing their exposure to passive funds tracking European or emerging market indices, or diversify away from equities by considering multi-asset funds....
...The return of normalised inflation that anyone over the age of 40 will remember will inevitably influence asset allocation as investors expect returns significantly above the risk-free rate....
...Yes, there are rival papers such as “The Equal Importance of Asset Allocation and Active Management” from 2010....
...Fink also said BlackRock was seeing “accelerating momentum” because it was winning new business from “marquee” clients for its technology, retirement and portfolio management services....
...assets not denominated in the US currency....
...But I don’t know what that theory is, and it’s not in the slide decks from the office’s recent asset allocation review or its 2023 trust level review....
...No portfolio manager wants to explain to their clients why they failed to back the hot stock in a particular year....
...This is leaving a lasting mark on asset allocation decisions. Whenever advisers recommend looking at potentially more lucrative long-term investments, the pushback is the same....
...Under Golden, the school’s allocation to private equity including venture capital crept up to 40 per cent, with the overall portfolio growing by almost 10 times since he first arrived....
...Model portfolios appear to be growing fast. Morningstar publishes its own estimates, which it admits are “conservative” and only include third-party model providers, not broker-dealers or wirehouses....
...After 23 consecutive months of investor withdrawals, assets in equity long-short funds are down to $723bn, below levels five years ago, according to Nasdaq eVestment....
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