Insights into Portfolio Construction

What can investors do to better diversify their portfolios?

Building portfolios that meet the investment needs of institutional allocators is becoming increasingly difficult. Delivering returns is one side of the equation. The other part is how to deal – efficiently – with a growing number of risks: correlation risk, volatility risk, duration risk and geopolitical risk, to name a few. The compendium of insights below provides some of the latest thinking on portfolio construction in the new market regime of today.

Expected Returns on a Multi-asset Portfolio (Norges Bank)

Building a multi-asset portfolio during a changing market regime poses unique challenges. The risk-return profiles of multiple asset classes need to be balanced carefully.

Utilizing Exchange-traded Products to Navigate Year-end Liquidity (BlackRock)

For compliance reasons, this paper is only accessible in the United States

Year-end liquidity conditions can be tight as a result of macro and regulatory forces. Exchange-traded products can help investors navigate these periods.

A Systematic Approach to Building Tax-aware Portfolios (Vanguard)

For compliance reasons, this paper is only accessible in the United States

Tax rates can influence portfolio construction in the near run and in the long-term. This paper looks at how to construct tax-aware portfolios that generate substantial wealth.

Global Asset Allocation Insights (T. Rowe Price)

For compliance reasons, this paper is only accessible in certain geographies

Global markets change fast under bouts of volatility and geopolitical tension. Asset allocation across geographies is becoming trickier for investors who seek diversification.

The Benefits of Private Credit in the ‘Traditional’ Portfolio (KKR)

In today's uncertain market environment, private credit can bring a number of benefits to a well-diversified portfolio.

How Many Stocks Should You Own? (NVDR)

Adequate diversification should be the aim for all investors. Conventional wisdom suggests that owning between 20-30 stocks ought to achieve this. But is this correct?

They’ve Ruled Out Tail Risk (Hussman Funds)

Market risk is high. However, overvaluation alone does not imply that the market will decline immediately, or even in the next few years.

Special Report

Alternative Investments: The benchmarking challenge (Special Report, 2023)

Our latest Special Report uncovers the world of liquid alternatives, exploring the five key benefits of allocating to the asset class. In volatile times, it helps investors to be allocated across liquid and diverse assets to better manage portfolio risk.