Practical Applications of The Power of Dynamic Asset Allocation

Abstract

Global multi-asset managers continue to rely on faulty historical models for asset allocation, in spite of evidence showing the shortcomings of this model. Forward-looking returns are much more reliable forecasting models, says Mirko Cardinale, Head of Asset Allocation for Europe, the Middle East and Africa at Russell Investmentsin London. Cardinale co-wrote The Power of Dynamic Asset Allocation ,

In this Practical Applications report, Cardinale explains that the article attempts to bridge the gap between theoretical research on equity and bond return predictability and industry practice. It was co-written by Marco Navone , a Senior Lecturer in Finance at the UTS Business School of the University of Technology Sydney , and Andrzej Pioch, a Multi-Asset Fund Manager at Aviva Investors in London.

TOPICS: Portfolio management/multi-asset allocation, statistical methods, accounting and ratio analysis