There has been extensive debate over the last couple of years on whether asset allocation did its job during the financial crisis of 2008-09. Between Mid – 2008 and early 2009 there was a decline in prices of most popular asset classes (Equities, Corporate Bonds, Real Estate). The recent financial crisis [...]

Asset Allocation owes its origins to the Nobel Award Winning Professor Harry Markowitz’s Modern Portfolio Theory or ‘ Mean Variance Analysis’. Research conducted over long periods of time on markets and specifically on equities, bonds and cash indicated that the proportion of these 3 major categories played a vital role in the portfolio performance. [...]