Strategic Asset Allocation Review
As we just said goodbye to 2016, we will have a series of newsletters to review our portfolios. In this newsletter, we look at our Strategic Asset Allocation (SAA) portfolios.
As we pointed out previously, our SAA portfolios are globally diversified in order to capture returns and spread out risk through various global assets, especially among US stocks, developed market stocks, emerging market stocks, REITs (Real Estate Investment Trusts), commodities and bonds. For the past several years, global allocation hasn’t done as well as domestic allocated portfolios. This is mainly because of the strength of US stocks, which have continued to do well. However, surprisingly, in 2016, US stocks were not the strongest main asset class.
Major asset class performance in 2016
Let’s first look at how the major asset classes fared in 2016.
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