The "New Classic" Equity Allocation?
categories: Indexes, Asset Allocation and Asset Liability Management, Investing (Investment Management), All Country Indexes, Equities, Research Paper, NIELSEN Frank, FACHINOTTI Giacomo, KANG Xiaowei, general
The recent financial crisis led many institutional investors to review their asset allocation policies and explore alternative approaches to implementation. MSCI recently held discussions around the world with major pension plans, asset managers, and investment consultants to understand different approaches to implementing equity allocation. Following these consultations, we provide a framework for the implementation of global equity allocation. Our research suggest that global equity mandates, together with dedicated emerging market mandates and small cap mandates, may be emerging as the "new classic" structure for implementing equity allocation.