asset allocation through changing market …（资产配置通过改变市场u2026）.pdf

Aon Hewitt Retirement and Investment Asset Allocation through Changing Market Environments Varying Asset Allocation with Risk Premiums January 2015 Investment advice and consulting services provided by Aon Hewitt Investment Consulting, Inc., an Aon Company. Risk. Reinsurance. Human Resources. Aon Hewitt Retirement and Investment Key Points  Asset allocation is well known to be one of the most influential determinants of portfolio risk and return. Key factors that help investors determine their preferred asset allocation include the investor’s risk tolerance and risk preference, and the expected risk premiums available in the capital markets. 1  Research has demonstrated that expected risk premiums vary substantially across time and asset classes. This suggests that investors could benefit from rotating their asset allocations as market conditions evolve.  Investors do not need certainty about the future direction of markets in order to benefit from allocation changes. Investors need only believe that expected risk premiums will change; thus, their asset allocation changes could reflect a better risk-return tradeoff.  There are several practical ways to implement an approach with varying asset allocations. Long-term strategic asset allocation targets can continue to be the backbone of an investment policy, with increasing flexibility to shift the asset allocation and risk exposures as market conditions change.  Though we expect these strategies are more likely to perform well than poorly, there is certainly some chance of underperformance. A key to success is having strong governance structures that are likely to weather periods of underperformance without abandoning the strategy. Introduction Nearly every investor knows that asset allocation is exceptionally important. There is an often-cited study