Asset Allocation
«Investment Policy (asset allocation) is the foundation upon which portfolios should be constructed and managed.»
Charles Ellis
«Approximately 94 percent of variability of a fund's investment return is due to asset allocation» - study of large pension funds over a 10-year period»
Gary P. Brinson, Randolph Hood and Gilbert L. Beebower
«We can extrapolate from the study that for the long term individual investor who maintains a consistent asset allocation and leans toward index funds, asset allocation determines about 100% of performance.»
Roger Ibbotson, Ibbotson Associates