ACHIEVING RETURNS VIA ASSET ALLOCATION

In 2010, Roger G. Ibbotson, in “The Importance of Asset Allocation,” shared examples that suggest that more than 90% of a portfolio’s return is attributable to its mix of asset classes.

 

A widely cited study of pension plan managers said that 91.5% of the difference between one portfolio’s performance and another’s are explained by asset allocation.

Therefore, the key question to ask and to determine is: “What are the big investment themes and top sectors in our world today?”

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