The Role of Strategic Asset Allocation in Portfolio Management
A strategic asset allocation combines the Investment Policy Statement with capital market expectations to determine a target weight (or range) for each asset class. Often the strategic asset allocation takes a single period perspective, in which the investor’s time horizon is the period in question. Though more costly, a multiple period perspective can also be taken, which would address liquidity and tax considerations surrounding portfolio rebalancing and the potential for serial correlation in investment returns.
For more information, see all articles on: Asset Allocation, FInancial Planning, Portfolio Management See also:
The Intelligent Investor: The Classic Text on Value Investing
Financial Statement Analysis: A Practitioner's Guide, 3rd Edition
Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)