Ingerðria Greslö is an adviser with an investment management company and focuses on asset allocation for the company’s high-net-worth investors. She prepares for a meeting with Maarten Pua, a new client who recently inherited a $10 million portfolio solely comprising public equities.
Greslö meets with Pua and proposes that she create a multi-asset portfolio by selling a portion of his equity holdings and investing the proceeds in another asset class. Greslö advises Pua that his investment objective should be to select an asset class that has a high potential to fulfill two functional roles: risk diversification and capital growth. Greslö suggests the following three asset classes:
- Public real estate
- Private real assets (timber)
- Equity long/short hedge funds
答案： • Timber exhibits a low correlation with public equities and can fulfill the functional role of risk diversification.
• Timber provides high long-term returns and can fulfill the functional role of capital growth.
Compared with timber, public real estate as an asset class would likely offer less opportunity for capital growth and lower diversification benefits. Also, equity long/short hedge funds as an asset class would provide a moderate degree of risk diversification in Pua’s all-equity portfolio but do not carry significant capital growth potential.
