Library

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 …

Library » A Historical Perspective on the Asset Allocation Decision

March 26, 2014 | Active Management

Introduction To a large extent, investment objectives are driven by investment time horizon, magnitude of withdrawals, and risk tolerance level. These goals must be identified and prioritized in order to determine an appropriate asset allocation. Establishing the appropriate asset allocation for …

Library » Inflation, The Forgotten Risk?

March 17, 2014 | Investment Themes

Over the long-run, investors must successfully manage three key risks: capital risk, reinvestment risk and inflation risk. Capital risk – the risk of sustained loss– is perhaps the most understood of these three risks. However, reinvestment risk (the inability to redeploy investment cash flows to …

Library » Why Security and Sector Diversification Are Important

February 20, 2014 | Active Management

Security diversification refers to the allocation of a portfolio across different securities, so that no single security makes up too large a percentage of the portfolio. Sector diversification takes this idea one step further, making sure that the portfolio is distributed among multiple …

Library » Manager Search and Evaluation Methodology

February 18, 2014 | Active Management

A critical step in developing any investment program is the evaluation and selection of the managers which will serve various roles within a total portfolio. Most importantly, the manager selection process should focus on the manager’s ability to meet client objectives going forward. While asset …

Library » Introduction to Risk Management

February 15, 2014 | Active Management

In general, the primary purpose of your investment portfolio is to meet your stated goals. Thus, risk management is defined as limiting your portfolio’s exposure to the risks that could prevent you from reaching your stated investment objectives over your given time frame. There are three basic …

Markets & Economy » Inflation: The Forgotten Risk?

February 13, 2014 | Fixed Income

Over the long-run, investors must successfully manage key risks, including capital risk, reinvestment rate risk, and inflation risk. Years of disinflation coupled with very low market expectations for future inflation have lulled many into a false sense of security that inflation can’t happen …

Markets & Economy » Quantitative Easing, Post-Taper: Will Inflation Rear Its Ugly Head?

January 06, 2014 | Domestic Markets

Worries abound regarding the potential long-term effects of quantitative easing (QE) on the U.S. economy. Of particular concern to many investors is inflation, and whether or not QE will give rise to levels of inflation that put their financial wellbeing at risk. The domestic economy is on a …

Markets & Economy » Investing Today with Long-Term Trends in Mind

January 06, 2014 | Investment Themes

Short-term news may drive day-to-day market volatility, but over time the long-term trends ultimately matter. In this post, we examine the long-term trends that most investors are not focusing on today, and the potential risks and opportunities that lie ahead for those most affected – the Boomers …


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