How asset classes have come of age since 1995

How asset classes have come of age since 1995

From the rise of passives and growth of the tech sector, to an increase in demand for bonds, Annabelle Williams analyses the drivers that have helped asset classes evolve over the last 20 years

The rise of asset allocation Portfolio construction 20 years ago was driven predominantly by stock picking, following analysis of company fundamentals. But portfolio construction has become far more sophisticated over the past 20 years, especially with the rise of asset class-based asset allocation models. "The adoption of asset allocation approaches was a big change… and then there was the rise of the hedge funds, which really started after they all held their value during the bursting of the tech bubble," said Guy Stephens, director at Rowan Dartington. During the 1990s, multi-f...