Asset Allocation Strategy : Summary of Asset Classes and Target Allocations

The asset allocation service develops diversified portfolios derived from a broad range of asset classes. These asset classes are selected to provide long-term out performance within the balanced portfolios. The various asset classes are continuously monitored to identify areas of opportunity to add value to the total portfolio. A summary of each of the broad asset classes is provided in the article. Few of the assets are Domestic equity, fixed income, international equities etc. It states that outlook for economic growth during 2003 looks bright. Investors are looking for positive momentum to improve overall sales and corporate earnings. The financial markets continue to look for sustained earnings, focusing on companies that are meeting their profitability targets and avoiding misses on their earnings estimates. The quality of company earnings is increasing in importance, as the accounting scandals have increased investor focus on integrity in accounting reports. Economic expansion should help to improve conditions for many companies, especially with low interest rates to finance new plant and equipment. A return to profitability and improving production should help to improve the employment outlook and consumer/investor confidence. It highlight market and provides tips for the better performance. It gives the description of the tool of the trade know as preferred securities which are considered as hybrid securities with the characteristics of both fixed income and equity securities.

Provided by: Principal Financial Group Topic: Date Added: Sep 2002 Format: PDF

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