{"product_id":"portfolio-asset-allocation-exploring-the-case-for-continued-reliance-on-financial-economic-models-by-asset-managers-von-ibrahim-mbithi","title":"Portfolio Asset Allocation. Exploring the Case for Continued Reliance on Financial Economic Models by Asset Managers","description":"\u003cp\u003eMaster's Thesis from the year 2009 in the subject Business economics - Investment and Finance, Schiller International University , language: English, abstract: In this paper, I address the theme of asset allocation in a pension fund portfolio using passive index funds and exchange-traded funds (ETFs). To illustrate this, I have created\u003c\/p\u003e\u003cp\u003efive model portfolios according to CAPM (Capital Asset Pricing Model) and MPT (Modern Portfolio Theory) models. My results are interesting because one of the five\u003c\/p\u003e\u003cp\u003eportfolios comes on top of the rest as a suitable portfolio for the pension fund. Since many investors are not experts, they usually leave the responsibility of managing their\u003c\/p\u003e\u003cp\u003easset portfolios to asset managers. And in order to attract as many investors as possible to their boutiques, asset managers will harp on about their superior portfolio returns that\u003c\/p\u003e\u003cp\u003ebeat the market. To beat the market they incur transaction costs which lower returns for investors. Most investors have come to acknowledge that capital markets are efficient\u003c\/p\u003e\u003cp\u003ethus the idea about beating them is a false proposition. In the face of this reality, asset managers and investors have turned to passive investment strategies. I conclude that\u003c\/p\u003e\u003cp\u003esuperior asset allocation and passive index investing through exchange-traded funds form a unique set of tools for pension fund investment managers.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783656820277\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783656820277","offer_id":39447381114973,"sku":"9783656820277","price":42.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/99cc7d86-bad5-464e-886b-66e1049165ec.jpg?v=1778133786","url":"https:\/\/shop.autorenwelt.de\/products\/portfolio-asset-allocation-exploring-the-case-for-continued-reliance-on-financial-economic-models-by-asset-managers-von-ibrahim-mbithi","provider":"Autorenwelt Shop","version":"1.0","type":"link"}