100% tevredenheidsgarantie Direct beschikbaar na je betaling Lees online óf als PDF Geen vaste maandelijkse kosten
logo-home
Asset Allocation & Sustainable Investing - Summary - Tilburg university - MSc Finance €6,49
In winkelwagen

Samenvatting

Asset Allocation & Sustainable Investing - Summary - Tilburg university - MSc Finance

 2 keer verkocht
  • Vak
  • Instelling

Instagram: ECOsummaries DM me for 20% discount! Summary for the course 'Asset Allocation & Sustainable Investing'. This summary was written in order to study for the final. Everything you need to know is available in this summary. Instagram: ECOsummaries DM me for 20% discount!

Voorbeeld 4 van de 78  pagina's

  • 6 december 2023
  • 78
  • 2023/2024
  • Samenvatting
avatar-seller
ASSET ALLOCATION
AND SUSTAINABLE
INVESTING:
SUMMARY


@ECOsummaries
→ 20% discount




1

,Table of contents
Asset allocation (AA)
Topic 1_________________________________________________page 3-17
Topic 2_________________________________________________page 18-27
Topic 3_________________________________________________page 28-37

Sustainable investing (SI)
Topic 1_________________________________________________page 38-40
Topic 2_________________________________________________page 41-45
Topic 3_________________________________________________page 46-48
Topic 4_________________________________________________page 49-53
Topic 5_________________________________________________page 54-60
Topic 6_________________________________________________page 61-66
Topic 7_________________________________________________page 67-72
Topic 8_________________________________________________page 73-78




2

,Topic 1 – Strategic asset allocation (Harvard) (AA)
Asset allocation:
Harvard management company (HMC) – endowment fund:
- Infinite lifetime, dependent on donations
- Aggregation of multiple funds, so not 1 large pile of money
Strategic asset allocation: long-term
- Long-term benchmark allocation to broad asset classes.
- Maximize risk return trade-off given asset class characteristics.
- Periodical rebalancing towards long-term weights.
Tactical asset allocation: short/medium term
- Active strategy to deviate from long-term allocation based on changing market.
→ Market timing: adjust weights towards asset you expect to perform well.
Strategic asset allocation – fund managers:
Monthly: fund managers stick close to strategic asset allocation and remain rather passive.
10-years: fund managers use other factors such as asset-class timing, security selection, etc.
→ High vs. low R2 that show how much variation in return are due to strategic asset
allocation or due to tactical asset allocation respectively.
Rules of asset management:
Traditional asset classes: cash, bonds, equities
Alternatives: private equity, private debt, hedge funds, real estate, crypto, commodities
HMC portfolio:
Dots: policy weights
Bars: min/max weights to deviate from policy.
→ Tactical asset allocation
Benchmark: different benchmarks used for
performance measurement.




3

, Rule 1 – do not neglect equities:
US households: ~50% of US households (positive
wealth) do not hold stocks (2015)
→ Even lower percentages for other countries,
why?




Equity participation puzzle:
Q: “Why do people underinvest in equity?”
Are equities more risky?
- Short run: equities are indeed riskier
- Long run: equities have the highest return of all asset classes in the long run, so less risky.
- Mean-variance-optimization:
* Calculates weights of asset classes based on risk averse level
* With risk-level = 3 or risk-level = 50 equities still get a 60% and 20% weight. Hence, even
with very
unrealistic high risk averse levels you should still include a large portio of equity in your
portfolio.
No time for equity investing?
- Invest in ETFs → safes time consuming investing and little costs
Behavioural finance:
1. Myopic loss aversion:
* Loss aversion: investors feel relatively worse about losses vs. good about gains.
→ Feeling of losing $1 is worse than feeling of gaining $1.
* Myopia: short-sightedness, investors check portfolio value too often (=vigilance)
→ Avoid equity assets with frequent,
short-term losses such as stocks
→ Ignoring superior long-term returns


2. Probability overweighting:
* Investors tend to overestimate small probability events and underestimate large
probability events
→ Investors expect a crash to happen with higher probability.
→ Investors expect non-extreme returns to happen with lower probability.




4

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, Bancontact of creditcard en je bent klaar. Geen abonnement nodig.

Focus op de essentie

Focus op de essentie

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper ecosummaries. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €6,49. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 66456 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Start met verkopen
€6,49  2x  verkocht
  • (0)
In winkelwagen
Toegevoegd