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Library » Modern Portfolio Theory: Expectation vs. Reality

November 26, 2014 | Active Management

MPT Background Academic studies have shown that the asset allocation decision accounts for a meaningful portion of long-term portfolio returns1. As such, the asset allocation decision remains the central element of portfolio construction in the investment industry today. While there are numerous …

Library » Constructing Performance Benchmarks for Life Cycle Options

September 10, 2014 | Retirement Plans

Introduction Active multiple asset class managers generally employ relatively flexible investment mandates, allowing them to invest in a variety of asset classes in varying degrees based on changing market conditions. Performance benchmarks must reflect both the overall asset allocation ranges …

Library » Evaluating the Merits of Active Management

September 08, 2014 | Active Management

Introduction The decision between active or passive management remains one of the highly debated topics in investment management today. Often, the discussion centers on the theoretical ability of a manager to outperform a benchmark. Proponents of passive management often believe that equity …

Library » Why a Coordinated Portfolio Management Structure is Important

April 29, 2014 | Active Management

Portfolio Management Structure refers to the basic issues related to setting up and maintaining an investment portfolio. The key issues to consider when evaluating a portfolio’s management structure include: the mechanism for adjusting the portfolio to fundamental shifts in the market and …

Library » Why Asset Class Diversification is Important

April 16, 2014 | Active Management

One of the most effective risk management tools available to investors is diversification across multiple asset classes (e.g., stocks, bonds, and cash). A portfolio’s distribution across various asset classes is referred to as the portfolio’s asset allocation. Academic studies have shown that …

Library » Why Managing Capital Risk Is Important

April 14, 2014 | Active Management

While risk is often defined by various statistics, the broadest definition of risk to investors is failing to achieve one’s investment objectives. There are three basic portfolio risks that can prevent an investor from reaching his/her goals: Capital Risk - the possibility of sustained …

Library » The Importance of Managing Inflation Risk for Long-Term Investors

April 09, 2014 | Active Management

Introduction to Risk Management While risk is often defined by various statistics, the broadest definition of risk to investors is failing to achieve one’s investment objectives. There are three basic portfolio risks that can prevent an investor from reaching his/her goals: Capital Risk—the …

Library » An All-Cap Core Investment Approach

April 08, 2014 | Active Management

What is an All-Cap Core Approach An All-Cap Core investment approach expands equity opportunities to include all levels of market capitalization and the range of style classifications. Rather than a constrained focus on a limited area of the investment universe, an All-Cap Core approach allows …

Library » Understanding Reinvestment Rate Risk in Today’s Environment: Avoiding Going Broke “Safely”

April 03, 2014 | Active Management

While risk is often defined by various statistics, the broadest definition of risk to investors is failing to achieve one’s investment objectives. There are three basic portfolio risks that can prevent an investor from reaching his/her goals: Capital Risk - the possibility of sustained losses …


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