- AOR invests in both stocks and bonds.
- AOR is structured as a kind of "fund of funds".
- While historical beta is close to 1x against major U.S. equity indices, AOR does not provide much alpha potential or even diversification potential.
- This is because the equity allocation is broadly diversified, while equities and bonds are positively correlated at the moment due to inflationary pressures.
- Given a likely average or unimpressive forward IRR, all considered, I would remain neutral on AOR and prefer to build my own portfolio than rely on a "fund of funds" structure.
For further details see:
AOR: Fairly Valued But Not A Great Diversified Amidst Global Inflationary Pressures