Optimal and Actual Asset Allocation Decisions in Protracted Low Interest Rate Periods
The project conducts an empirical study of the aggregate asset allocation decisions of Canadian, UK and US life insurance companies and pension funds. The project addresses three questions: 1. When making asset allocation decisions, do institutional investors react to changing economic conditions, including falling interest rates? 2. Do institutional investors flee risky investments during periods of crisis? 3. Does the strength of the relationship between asset allocation and economic conditions vary across institutional investor profiles? In addition, this project analyzes whether the observed increase in allocations to alternative and non-financial assets in low interest rate environments is justified.
|University:||University of Southern Queensland
School of Commerce
|Project Lead:||Chandrasekhar Krishnamurti|
Chandrasekhar Krishnamurti is a Professor, the research director and the Head of Finance at University of Southern Queensland’s School of Commerce. He holds a BE from the University of Madras and a Ph.D. from the University of Iowa. Krishnamurti is also a CFA charter holder. His research focuses on market microstructure, corporate governance and corporate finance.