Mastering Asset Allocation Strategies
Insights Gained from SPDR Portfolio Consulting
The SPDR Portfolio Consulting Service has conducted deep-dive portfolio analysis for clients over the past three years. During this time, we have noticed three recurring issues that investors encounter: having a false sense of diversification, dealing with the limits of expectations and history, and balancing multiple objectives and constraints.
Download our latest whitepaper to learn how these issues manifest in common practice and learn what steps investors can take to improve their asset allocation strategies.
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Bonds generally present less short-term risk and volatility than stocks, but contain interest rate risk (as interest rates raise, bond prices usually fall); issuer default risk; issuer credit risk; liquidity risk; and inflation risk. These effects are usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
The returns on a portfolio of securities which exclude companies that do not meet the portfolio’s specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio’s ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.
This document contains certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
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The views expressed in this material are the views of SPDR EMEA Quantitative Research through the period ending 6 December 2022 and are subject to change based on market and other conditions. This document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
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