ABSTRACT
Asset allocation is an important duty performed by trustee fiduciaries overseeing the prudent investment of plan assets. Asset allocation refers to the selection of appropriate asset classes for the investment of the fund’s assets in relation to its investment objectives, risk tolerance and investment horizon. Public equities consist of publicly traded stocks of corporations with market capitalization or market values ranging from nano-cap to mega-cap. Generally, the larger the market capitalization, the lower the risk of investment and the smaller the potential returns. Public equity is the most commonly understood asset class for applying responsible investment strategies. Given its beginnings within religious groups, responsible investments in the asset class are often equated with negative or exclusionary screening. Fixed-income investments consist of short- and long-term debt instruments with a fixed maturity and a fixed or adjustable return in the form of interest income.
