PT - JOURNAL ARTICLE AU - Sébastien Page AU - Joseph Simonian AU - Fei He TI - Asset Allocation: <em>Systemic Liquidity as a Risk Factor</em> DP - 2011 Mar 20 TA - Trading PG - 19--23 VI - 2011 IP - 1 4099 - http://guides.pm-research.com/content/2011/1/19.short 4100 - http://guides.pm-research.com/content/2011/1/19.full AB - Most investors think of liquidity as a synonym for execution. Indeed, the ability to quickly and easily move in and out of positions is the defining measure of liquidity. But just as the financial crisis proved that asset allocation involves more than toggling between bonds and stocks, a proper examination of portfolio construction reveals that liquidity is also a topdown driver of returns. In this article PIMCO investment professionals examine how liquidity contributes to performance over time and urge investors to treat liquidity as one of the key “risk factors” in their portfolio construction.