Publication:
The role of Islamic asset classes in the diversified portfolios
Abstract
Asset allocation is a central issue for the entire asset management industry in order to achieve the best possible risk-return profile. As the current trend shifts from intra-asset allocation to inter-asset allocation, the variety of asset classes becomes a key driver in determining the overall performance of a diversified portfolio. The rationale is that each asset class conceals its unique dimensions of risk, where a mixture of multiple asset classes may expand an investment opportunity set. This leads global investors to adopt a niche approach in order to achieve positive-sum games. The increasing importance of asset classes has substantially driven innovation in the financial industry from traditional assets (i.e. equity and fixed income) into a broader range of traditional alternative assets (private equity, real estate, commodities, currency) and modern alternative assets (hedge fund and managed futures).
Keywords
Islamic asset classess , Financial industry
Citation
Dewandaru, Ginanjar. (2017). The role of Islamic asset classes in the diversified portfolios. IF Hub, 6 (September 2017), pp. 13-15.
Publisher
INCEIF
DOI
Files
IFHubEd6_role_islamic_asset_classes_diversified_portfolios_ginanjar.pdf
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