Strategic asset allocation
InvestingDefinition
Long-term, policy-level allocation across asset classes, set based on the investor's objectives and risk tolerance. Usually reviewed every 3-5 years. Anchors all investment decisions.
Pension SAA: typically 50-70% equities, 20-40% fixed income, 5-25% alternatives. Endowment SAA: more aggressive (Yale: 60%+ alternatives). SAA delivers ~90% of long-run portfolio variation per Brinson-Hood-Beebower.
Pension SAA: typically 50-70% equities, 20-40% fixed income, 5-25% alternatives. Endowment SAA: more aggressive (Yale: 60%+ alternatives). SAA delivers ~90% of long-run portfolio variation per Brinson-Hood-Beebower.
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