Portfolio Management

  1. In pursuit of the holy grail

    trueThe revival of the financial (boom-bust) cycle presents new challenges to asset allocators and individual investors. Integrating macroeconomic and financial market information is a key consideration in the 21st century, given dramatic changes in market structure and behavior. Portfolios should be ...

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  1. Fixed-income attribution: Assessing readiness before the game starts

    trueThe purpose of a fixed-income attribution solution is to break down the total return of a fixed-income portfolio into returns of risks common across investments, and to compare and contrast fixed-income attribution results against stated portfolio investment strategies and styles.

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  2. Active vs. passive: the age-old debate

    trueSome investors now believe that “going passive” provides a safe harbor from underperformance and perceived risks of active management. Hence, passive investing continues to gain market share at a rapid pace. But this might not be the right time to make an active decision to go passive.

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  3. Managing asset allocation and risk in a complex world

    trueIn this difficult investing environment, we favor a risk-based approach to allocating assets, while retaining the flexibility to adjust portfolio exposures and to make opportunistic investments in markets that present attractive expected risk-adjusted returns.

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  4. The puzzle in active investing

    trueMost active investors are — despite a flood of modern resources — still unable to outperform their benchmarks by a high enough amount to warrant skill.

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  5. Combining equity risk factors: Implementation matters

    trueThe bulk of research on equity tilts toward risk factors addresses only the existence of individual factors. Relatively little attention has been paid to how factor-based strategies are best implemented.

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  6. Capital asset pricing mistakes

    trueThe introduction of asymmetric beta to the CAPM framework can allow an investor to construct a portfolio with expectations well above the security market line.

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  7. Smart money, crowded trades?

    trueIn a multimanager portfolio, duplicate positions are not uncommon and are, perhaps, inevitable. The sources of such overlap are far from clear. How does an investor measure and manage this “risk”?

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  8. Moving beyond 'buy-hold-lease' farmland strategies

    trueFalling prices for row crops, like corn and soybeans, which often account for more than 60% of the typical institutional portfolio, suggest farmland investors will need to consider other strategies for generating attractive returns in the future.

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  9. All risks are not created equal

    trueInvestors who have relied on quantitative easing as the basis for many of their investment decisions have been well-rewarded. But the times, and investors' views, are changing.

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  10. Evaluating plan hibernation vs. plan termination

    trueFor the nearly 50% of corporate pension plans that are either closed or frozen, the choice to terminate the plan is essentially a timing decision, because it is unlikely that a sponsor would elect to manage the plan until the last benefit is paid to the last surviving participant.

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  11. Can estimating volatility trump predicting stock returns?

    trueCapturing stocks' volatility is a path to potential outperformance that is often overlooked in favor of the traditional betting on stocks that are likely to rise in value.

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  12. Look beyond macro story to find equity returns in frontier markets

    trueFrontier markets typically are underdeveloped, with strong prospects for growth and capital market expansion.

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  13. Drug royalties in a real asset portfolio

    trueThe pharmaceutical industry has a strong need to access growth capital for the development and production of blockbuster drugs.

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