Fi360 Pacific
  • Home
  • Who We Are
    • Our Team
    • Partners
  • What We Do
    • Training
    • Assessments
  • Fiduciaries
    • Prudent Practices
  • Perspectives
  • Accreditations
    • AIF Designee Search
    • Logos for your Marketing
  • Contact
    • Calendar
  • Login
    • Designation Renewal

What You Need to Consider when Evaluating Objective-Based Funds

25/10/2018

 
Objective-based asset allocation (OBAA) funds were born in the ashes of the GFC and target an absolute return.  Their appeal is that they offer investors a one-stop solution and better potential management of downside risks through dynamic asset allocation and risk protection overlays.  However, our analysis shows most have under-performed conventional balanced funds since inception, and they have not, in general, meaningfully used the asset allocation ranges permitted by their investment policies.  They are also yet to be truly tested in a bearish market environment.  Our findings show that the actual investments made differ markedly between OBAA funds.  This highlights that the need for comprehensive due diligence by Advisers, Trustees and other fiduciaries is just as material for OBAA funds as conventional funds.  Finally we argue that the ongoing monitoring requirement is even higher with OBAA funds because the asset allocation and fund selection decisions they make still remain the responsibility of the fiduciary – they cannot be delegated away.
​

Click here to download paper

Comments are closed.
Helping you grow and protect the assets under your care
Our Services
Training
​​Assessments

About Us
Contact
Our Team
Publications
Partners
Fi360 Inc
CEFEX
APAFS
​
ASFA
​
Pacific Provident Funds
MyFiduciary
FANZ

​
Sources
Learning and Development
Prudent Practices
​Pacific Fiduciary Precepts
CEFEX Accreditations
​Designee Search
​Your Designation
Publications
TPK resources for Māori investors
​




 Fi360 Pacific Ltd ©2020.  All Rights Reserved
​Privacy Policy 

  • Home
  • Who We Are
    • Our Team
    • Partners
  • What We Do
    • Training
    • Assessments
  • Fiduciaries
    • Prudent Practices
  • Perspectives
  • Accreditations
    • AIF Designee Search
    • Logos for your Marketing
  • Contact
    • Calendar
  • Login
    • Designation Renewal