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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 » 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 » 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 …

Library » The Benefits of Incorporating a Full Range of Lifestyle Options on an Investment Menu

January 02, 2014 | Retirement Plans

Introduction A well-structured and well-communicated investment menu can help Plan Sponsors manage their fiduciary liability and is key to minimizing a wide range of common problems associated with participant-directed plans. To that end, lifestyle or risk-based options have been promoted as a …

Library » What's Left to the "Wall of Worry"?

June 06, 2013 | Investment Themes

Stocks historically have done quite well in the face of investor pessimism and concerns. This has led to the saying that stocks tend to climb a “wall of worry.” There has been no shortage of proverbial bricks with which to build a “wall of worry” since the depths of the global financial crisis in …


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