February CrossBorder: Asset Allocation - Carefully Sliced or Roll of The Dice?
Asset Allocation, once as unquestioned as the mantra of diversification and considered crucial to the investment process of every fund, is under attack. Some say it remains important, some say it has no place in the new world order, but we say if there are assets and there are options for investing, then the assets have to be allocated to certain investments so is it an issue of semantics?
Life is a gamble.It can be decided by a toss of a coin, a nod of the head, a turn of the dice. Punters read the form, check the weather, try to look both horse and rider in the eye to glean that all-important indication of win or lose.
Investors are warned against using past-performance as an indication of future results but they are still inundated with league tables and statistics.
All too confusing? Kenny Rogers said “you gotta know when to hold ‘em and you gotta know when to fold ‘em” but we didn’t ask Kenny, instead we canvassed the views of Mercer’s asset allocation specialist David Stuart about what he was advising, asked Sam Sicilia about whether he listened to advice or simply made up his own mind what was best for HOSTPLUS one of Australia’s leading super funds, and benefited from the experience of Stuart Leckie founder of Hong Kong’s Retirement Services Association and pension advisor to China.