TY - JOUR T1 - Asset Allocation: <em>Systemic Liquidity as a Risk Factor</em> JF - Trading SP - 19 LP - 23 VL - 2011 IS - 1 AU - Sébastien Page AU - Joseph Simonian AU - Fei He Y1 - 2011/03/20 UR - http://guides.pm-research.com/content/2011/1/19.abstract N2 - 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. ER -