The All-Weather Strategy might not be the best strategy for private investors with a long term horizon. Users are advised to periodically review the contents of this Website to be familiar with any modifications. The 10-K filing did not provide asset allocation information. Main Office In order to reduce the volatility of the investment portfolio, which is very crucial for pension funds to avoid any underfunding, the asset allocation in 2018 in USA is more like 50% stocks … Table 1 (below) shows the return and volatility of different asset classes from 1994 to 2017. 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I back-tested four different investment strategies: In the past the 60% stocks and 40% T-Bonds investment strategy was the most common strategy among pension fund investment managers. Continuing the trend from last year, average equity allocations have ticked downward from 28% to 25% (seen further in Section 8), while average bond allocations have increased from 51% to 53%, and average alternatives allocations have increased from 17% to 18%. 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You must not redeliver any of the pages, text, images, or content of this Website using "framing" or similar technology. Pension fund managers must take into account the variability of the portfolio returns from one year to another and here is the All-Weather portfolio superior. The study includes an analysis of the seven largest markets (the P7) which includes Australia, Canada, Japan, Netherlands, Switzerland, UK and US and comprises 92% of total pension assets. Past performance is not indicative of future results. It consists of: The high allocation of bonds in the All-Weather portfolio might surprise but the reason is the balancing of risk. 685 Third Avenue No WarrantyThe Contents are published in good faith but no advice, representation or warranty, express or implied, is made by BlackRock or by any person as to its adequacy, accuracy, completeness, reasonableness or that it is fit for your particular purpose, and it should not be relied on as such. The European Asset Allocation Survey provides a comprehensive overview of investment strategy across the European pension industry and attempts to identify emerging trends in the behaviour of institutional investors. Mercer report uncovers asset allocation and investment trends on nearly US$5 trillion  in assets under management (AUM) from government, corporate, and mandatory pension … This material is provided for educational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein. Intellectual Property RightsCopyright, trademark and other forms of proprietary rights protect the Contents of this Website. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. However the correctly diversified portfolio will prosper for eternity. He worked for international banks and multinational corporation gathering experience in P&L/risk management, M&A, investment strategies, negotiation, cash/currency management and cost control. %PDF-1.5 International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation, and the possibility of substantial volatility due to adverse political, economic or other developments. At the end of each year asset allocation changes according to market data and the desired allocation has to be achieved again. The information provided here is neither tax nor legal advice. The European Asset Allocation Survey provides a comprehensive overview of investment strategy across the European pension industry and attempts to identify emerging trends in the behaviour of institutional investors.