3 SEI Target Allocation Strategy Suite
Those critical asset allocation decisions can
be achieved in one of two ways
Strategic asset allocation:
Utilizes a modern portfolio theory-
based approach, constructed on
the basis of long-term asset class
forecasts with the target to maintain
a set combination of asset classes.
Dynamic asset allocation:
Incorporates facets of behavioral
finance that more deeply and
broadly diversify allocations and may
more actively adjust asset classes
based on medium-term views.
Sources of portfolio returns.
Source: Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower, "Determinants of Portfolio
Performance," Financial Analysts Journal, Vol. 51, No. 1, January-February 1995.
94%
Asset class selection
4%
Security selection
2%
Market timing
3 SEI Target Allocation Strategy Suite
Building a diversified portfolio, across asset classes, is one of the most
important components in helping investors reach their financial goals.
