Featured Papers and Interviews with Industry Thought Leaders
Asset allocation and portfolio construction are considered to be the main determinants of investment risk and returns for investors. The challenge for asset managers has always been finding an optimal asset allocation that meets both investors’ risk and reward requirements. Asset allocation methods have developed and improved over time, but investment theorists are still trying to identify the ‘perfect’ asset allocation.
The main drawbacks of portfolio construction theory are that there are a number of assumptions that very rarely happen in the ‘real world’. For example, most models assume that all investors are rational, risk averse and can all borrow unlimited amounts at the risk-free rate, but these assumptions are completely unrealistic.
This Special Report seeks to identify optimal methods for constructing, evaluating strategic asset allocations and the range of available portfolio construction options available.