Research Affiliates has launched a new version of Asset Allocation Interactive, an online investor tool that provides investment information and expected return data across more than 130 assets.
The site features newly added alternative asset classes including real estate, hedge funds, and private equity. The site also includes 11 model portfolios – encompassing expected and historical returns and risk, tracking error, CAPE ratios, inflation expectations, yield curves, GDP growth rates, commodity term structures, and more.
Acknowledging the popularity of the tool outside the United States, results are now available in four additional major currencies: euro, British pound, Japanese yen, and Australian dollar. Users can create, save, and blend portfolios, and configure results using two expected return models: valuation dependent and/or yield-plus-growth.
The newly upgraded Asset Allocation Interactive is a more comprehensive, global, and robust expected returns toolkit specifically designed to benefit all investors.
Rob Arnott (pictured), Chairman and CEO, Research Affiliates, says: One of the greatest challenges investors face today is an “expectations gap” between the returns that they hope to earn and the plausible returns of today’s low-yielding markets. Withs the launch of our Asset Allocation website in October 2014, we sought to shift investors’ focus from chasing the past performance of asset classes to emphasise forward-looking returns on a sound basis of valuation. With our vastly improved Asset Allocation Interactive website, we are expanding the functionality to cover more assets and model portfolios and to allow results to be viewed from the perspective of five major currencies, putting even more power into the hands of advisors and investors.
John West, Head of Client Strategies, Research Affiliates, says: Asset allocation is not a one-size-fits-all endeavor. As we state in our investment beliefs: investor preferences go beyond risk and return. On the one hand, a pension may prefer a close match to their liability stream over absolute volatility. On the other hand, some investors are far more concerned with so-called maverick risk, or how far their asset mix may deviate from the normal portfolio. Through our new Asset Allocation Interactive website, the user can evaluate risk through multiple lenses for a richer understanding of a portfolio’s potential journey. The result? A more informed decision that the end investor can stick with for the long term.
Jim Masturzo, Senior Vice President, Asset Allocation, Research Affiliates, says: “No single expected return model is a silver bullet, applicable to all markets at all times. The new Asset Allocation Interactive comes with two expected return models and the ability to blend models, creating portfolios based on investor-specific perspectives.”