MyAQR Education Strategies About Us ASSET ALLOCATION Asset Allocation in a Low Yield Environment August 21, 2017 - John J. Huss Thomas Maloney Zachary T. Mees Michael A. Mendelson Topics - Asset Allocation Strategic Asset Allocation Tactical Asset Allocation Alternative Investing Asset Allocation in a Low Yield Environment The year 2016 saw bond yields fall to unprecedented low levels in major developed markets, with nominal yields on 10-year German and Japanese government bonds even turning negative. While yields have risen off their lows in 2017, we are still in a very low rate environment. Does this demand exceptional action from investors – even those who usually maintain a strategic allocation to global bonds? We find that it does not, instead it highlights the importance of diversification across many return sources. Research Journal Article Published In Alternative Investment Analyst Review Download Related Thinking Can Risk Parity Outperform If Yields Rise? White Paper - July 1, 2013 Understanding Risk Parity White Paper - October 1, 2010 AQR Capital Management, LLC, (“AQR”) provide links to third-party websites only as a convenience, and the inclusion of such links does not imply any endorsement, approval, investigation, verification or monitoring by us of any content or information contained within or accessible from the linked sites. If you choose to visit the linked sites, you do so at your own risk, and you will be subject to such sites' terms of use and privacy policies, over which AQR.com has no control. In no event will AQR be responsible for any information or content within the linked sites or your use of the linked sites. The information contained herein is only as current as of the date indicated, and may be superseded by subsequent market events or for other reasons. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of AQR Capital Management, LLC, its affiliates or its employees. This information is not intended to, and does not relate specifically to any investment strategy or product that AQR offers. It is being provided merely to provide a framework to assist in the implementation of an investor’s own analysis and an investor’s own view on the topic discussed herein. Past performance is not a guarantee of future results. Hypothetical performance results have many inherent limitations, some of which, but not all, are described herein. The hypothetical performance shown was derived from the retroactive application of a model developed with the benefit of hindsight. Hypothetical performance results are presented for illustrative purposes only. Diversification does not eliminate the risk of experiencing investment loss. Certain publications may have been written prior to the author being an employee of AQR. This material is intended for informational purposes only and should not be construed as legal or tax advice, nor is it intended to replace the advice of a qualified attorney or tax advisor. AQR Capital Management is a global investment management firm, which may or may not apply similar investment techniques or methods of analysis as described herein. The views expressed here are those of the authors and not necessarily those of AQR. Education Featured Thinking Research Cliff's Perspectives Data Sets Learning Center Quick Clips Podcasts Strategies Overview Equities Fixed Income Alternatives ESG Tax-Aware Investment Vehicles About Us Our Firm News Careers Academic Engagement Contact Us MyAQR Log In Register Privacy Policy Social Media Disclaimers Terms of Use Disability Accommodation for Applicants Equal Opportunity Employer ©2021 AQR Capital Management, LLC. All rights reserved.