Frontier IM reviews allocation to multi-asset funds

Frontier Investment Management has updated the asset allocation of its multi-asset investment funds. The UK based investment manager announced the changes following its annual asset allocation review.

Frontier’s review of the average asset allocation changes of the top 20 endowments in 2011 revealed a move away from cash, hedge funds and global bonds, toward global equities, real estate, and private equity.

Frontier’s Multi Asset Platform Conservative Fund and the IFDS Frontier MAP Balanced Fund will be reducing their global fixed income allocation from 16% to 20%, among other changes. Meanwhile, the IFDS Frontier MAP Cautious find will be increasing its global fixed income allocation from 35% to 41%, and reducing its Hedge fund allocation from 10% to 5%, among other changes.

Michael Azlen, managing partner and executive chairman of Frontier Investment Management said: “Over the past two decades, the US Endowment funds have consistently achieved attractive investment returns with moderate volatility due to their multi-asset approach to investing, strategic asset allocation and significant exposure to alternative asset classes.

“In our recent research paper, Investing like the Harvard and Yale Endowment Funds, we found that by applying an endowment asset allocation to an investable index based portfolio, there is considerable scope for achieving risk-adjusted returns that are superior to traditional portfolios.”

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