PT - JOURNAL ARTICLE AU - Lujer Santacruz TI - Asset Allocation Theory and Practice in Australian<br/>Investment Management: <em>Reasons for the Dichotomy</em> AID - 10.3905/jwm.2016.19.3.031 DP - 2016 Oct 31 TA - The Journal of Wealth Management PG - 31--48 VI - 19 IP - 3 4099 - https://pm-research.com/content/19/3/31.short 4100 - https://pm-research.com/content/19/3/31.full AB - Asset allocation is the decision on how much of the investment portfolio to place in each of the broad asset classes (e.g., cash, fixed interest securities, property, equities). An online survey among practitioners established that while there is a high level of awareness, there is a relatively low level of usage of asset allocation theory and theory-based methods in the industry. The reasons for this dichotomy were examined using a conceptual model based on those commonly used in research on adoption of an innovation or a new technology. Applying structural equation modeling on the survey data, perceived usefulness appears to have the strongest influence on usage followed by facilitating conditions. The two other theorized factors—perceived ease of use and external influence—appeared insignificant. Limitations of the study are discussed as well as future areas for related research.TOPICS: Portfolio theory, portfolio construction, developed