Sentences with phrase «allocation to equities»

Target - date funds with high allocations to equities tend to be more tax - efficient (few capital gains and dividend distributions) making them more suited for taxable accounts.

Participants in plans in which employer contributions are made in company stock appear to decrease allocations to equity funds and to increase the allocation of company stock in self - directed balances.

So, they said, increase allocation to equity long short, which struck me as precisely the wrong thing to do.

As can be expected, the average annual return of a portfolio increases with allocation to equities, but generally so does the number of down years as well as the maximum annual loss.

Generally speaking, beating your mortgage cost will require a larger allocation to equities, which can entail substantial amounts of portfolio volatility.

This would be the perfect example of a time to greatly lower your asset allocation to equities.

The greater allocation to high - yield bonds is offset somewhat by the lower allocation to equities, which has fallen from over 55 % to less than 40 %.

When market valuations are high the value investor should lower risk by decreasing portfolio allocation to equities.

A 40 % allocation to equities contributes 20 years to portfolio duration.

A 50 % allocation to equities sounds far too aggressive at this late stage in the game.

Investors who are well - diversified have probably been hurt but not to the extent of those with a heavy allocation to equities and other areas that have been hit.

At launch the portfolio is expected to have around 70 per cent allocation to equities, 20 per cent to bonds and 10 per cent in cash.

I've had a 30 % target allocation to equities for some years now, so I hold stocks whether they're interesting or not.

The 69 to 72 percent allocation to equity is more than its category peers.

But when we get into the 50s, 60s, and even the 70s, that's a fairly sizable allocation to equities.

It is probably 1/2 that now but that's the nature of a portfolio with high allocation to equities.

A larger allocation to equities will allow further growth and a slightly higher withdrawal rate.

This would be the perfect example of a time to increase your asset allocation to equities.

Increased allocation to equity, and subsequently higher yields, is necessary to offset the burden imposed by the high education inflation rate.

When market valuations are low the value investor should take advantage of the improved probability of higher prices by increasing portfolio allocation to equities.

Similarly, adding a 10 % listed property allocation to the equity portion of a 60 % S&P / NZX 50 and 40 % S&P / NZX Composite Investment Grade Bond Index portfolio resulted in a further reduction in volatility and higher risk - adjusted return over the trailing five - year period.

At that time, Morningstar found short - dated funds, like 2010 target date funds, had the widest range of allocations to equity investments that: ``... span a startling range of equity allocations — from 72 percent to 26 percent.

My ideal allocation to equities is 60 percent.

The authors call this a rising equity glide path and envisage a lifetime allocation to equities that resembles a U shape.

I think that there was an article on here once about using either LS80 / 20 and LS20 / 80 (or 60/40 and 40/60) in tandem to fine - tune allocations to equities and bonds but I can't find it at the moment.

They first plotted each individual's recommended allocation to equities on a chart, alongside the equity glide path for a balanced fund.

The use of these metrics assumes that AA is determined after the risks of the individual securities is considered - a higher allocation to equity if the securities are lower risk, and vice versa.

Models offer allocations to equity and fixed income mutual funds, money market funds and ETFs (exchange traded funds)

But within that constraint, equity allocation is raised when the investor is behind the goal (the probability of ruin is higher), and, conversely, allocation to equities falls when the investor is on target.

Participants in plans not offering GICs or company stock tend to have the highest allocations to equity funds.

Dynamic Fund Allocation balances equity and debt exposure in the portfolio by automatic allocation of fund value as per predetermined percentages — higher allocation to equities in the initial policy years for generating potentially higher returns, and later, higher allocation to debt as the policy nears maturity to protect the maturity value.

To some extent, the super sector's relatively large allocation to equities, which are, in principle, easily liquefied, but relatively small allocation to fixed income, which is not easily liquefied, may reflect some of these liquidity considerations.

So I decrease my asset allocation to equities.

Equities: By default, we are looking at a 45 % overall allocation to equities.

To demonstrate the framework, Idzorek explains, the team first ran a hypothetical plan of 10 participants of different ages through Morningstar's managed account engine to come up with a recommended allocation to equities.

The market run - up has left investors as a group with an unusually high allocation to equities, at 57 percent.

«The largest pension plan in the world is Japanese, and they're increasing their allocations to equities, and that's going to represent quite a large amount of money going into the markets.

Still, you should understand your target - date fund's risk profile, starting with its glide path — the way the fund reduces its allocation to equities as the year of your retirement approaches.

We believe the Standard and Poor's 500 Index will rise to 2,000 by the end of 2014, which implies a price return of about 11 %... While that gain would be less than in 2013, our view is still higher than the consensus view on Wall Street... Take note that allocations to equities (53 %) are lower than the benchmark (65 %).

The rule follows the approach used by Benjamin Graham in his book The Intelligent Investor, whereby the allocation to equities is reduced after the stock market has run up a lot, and increased after the market has gone down a lot.

Specifically, be sure your allocation to equity funds fits your investment timeframe and risk tolerance.

But the years leading up to retirement tend to be your highest - earning years and an allocation to equities can boost your retirement portfolio.

Equity volatility is frequently used to hedge equity portfolios, but some bond portfolios may also stand to benefit from an allocation to equity volatility.