TY - JOUR T1 - An Alpha + Beta Framework JF - The Journal of Investing SP - 9 LP - 16 DO - 10.3905/joi.2005.605276 VL - 14 IS - 4 AU - Edward Kung AU - Lawrence Pohlman Y1 - 2005/11/30 UR - https://pm-research.com/content/14/4/9.abstract N2 - The importance of strategic asset allocation has been well documented and accepted by institutional investors. This was not seriously challenged until Peter Bernstein openly questioned the validity of the policy portfolio and the benchmark appropriateness in his March 2003 Economics and Portfolio Strategy paper entitled “Are Policy Portfolios Obsolete?” This article attempts to elevate and broaden this concept from the portfolio level to all asset classes and to focus on the advantages of making separate alpha and beta decisions, rather than on how to separate alpha and beta. The authors present an asset allocation framework and the methodology that potentially solves the structural issues involved in asset allocation ER -