The basis of asset allocation rests, in part, on the correlation (or lack of correlation) between
asset classes.
This information helps tactical asset allocators study the long-term outlook for various
asset classes, which is what they concentrate on anyway, and recommend shifts when current valuations deviate from that outlook.
Managers who digest this will allocate across investment styles and
asset classes to pick up on trends more quickly.
When after-tax returns are considered, certain
asset classes that would otherwise be expected to provide a favorable risk-adJusted return effect on a portfolio actually become an inferior choice, because their after-tax return is insufficient to justify the risk.
The total return on investment is good and all
asset classes have noted a positive relative return," says CEO Eva Halvarsson, Second AP Fund.
Users enjoy flexibility in choices of
asset classes and investment types.
From its unique position at the crossroads of the global markets, it creates and unlocks value for its clients with original flow-based research, innovative portfolio strategies, trade process optimization, and global connectivity across multiple
asset classes and markets.
Research shows that almost 92 percent of long-term investment returns are determined by the mix of
asset classes selected5.
They will help strengthen our ability to deliver to our clients a comprehensive alpha-generation toolkit comprised of global
asset classes, such as high yield and leveraged loans, that are increasing in popularity.
This is an interesting consequence of the rise in products designed to mirror distinct benchmarks, which allow investors to pick and choose exposure to specific sizes, styles, sectors, and
asset classes.
Enables Investment Banks to Streamline Execution Processes across
Asset Classes at Faster, More Efficient, Ultra-High Speeds
Richards commented, "As I learned more about SSgA's global footprint in investment, cutting edge implementation strategies, and global distribution capabilities, I was convinced that SSgA provides the perfect platform for building next-generation capabilities in High Yield and Leveraged Loans as growing global
asset classes.
