New takes on portfolio construction

Adapting portfolio construction to structural uncertainty

As investors face challenges like equity concentration, the highest since the 1930s, and a shifting investment regime, which brings with it new risks and risk relationships, it is becoming clear that traditional methods of portfolio construction may no longer hold up. Top names in asset management offer insights for how to navigate this environment, from broadening equity exposure to adopting a total portfolio approach.

Scenario Analysis: When Stocks, Bonds and the Dollar Fall Together (MSCI)

What happens when stocks, bonds, and the dollar fall together? MSCI introduces a framework for global multi-asset-class investors to assess portfolio risks in triple-red scenarios.

Rethinking Risk and Global Power with Jake Sullivan (PGIM)

A conversation with former U.S. National Security Advisor Jake Sullivan about the forces reshaping global power and what they mean for markets and investment strategy.

AI Risks Extending beyond Software (MFS)

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

AI has the potential to bolster industries or disrupt them. How can investors identify which industries AI will reinforce and which ones it will undermine?

Making Portfolio Optimization Understandable for Humans (BNP Paribas AM)

Making portfolio optimization understandable for investors: turning a traditionally complex process into one that is ready for real‑world implementation.

Stock Market Concentration Has Surpassed Its 1930s Peak (Morningstar Indexes)

Stock market concentration has surpassed its 1930s peak. Should investors be concerned? A historical perspective.

How Errors and Poor Benchmarks Can Bring Ruin to TPA (Alex Beath & Associates)

A look at investing using the total portfolio approach (TPA): how errors and poor benchmarks can bring ruin to the portfolio.

What Is Risk? (ARP)

“Risk” is a word that investors use every day, but what does it actually mean? A perspective on how to define it, measure it, and manage it.

Concentration Risk and the Case for Equity Exposure (Principal Asset Management)

In a highly concentrated U.S. equity market, how can investors pursue alpha while diversifying risk? A case for broader equity exposure.

Why Static Portfolios Fail When Risk Regimes Change (CFA Institute)

Why do fixed portfolio structures struggle when risk regimes shift? The assumption that risk relationships will eventually revert to historical norms.

Extending the Total Portfolio Approach to Private Assets (Venn)

How can investors extend the total portfolio approach to private assets? Introducing Venn Daily Private Asset Returns (VDPARs).

The TPA Roadmap for GPs: From Parts Provider to Chief Problem Solver (CAIA blog)

A three-step roadmap for GPs to adapt from an endowment or strategic asset allocation (SAA) model to a total portfolio approach (TPA) ecosystem.

Risk Appetite and (Mis)Pricing (Journal of Banking and Finance)

Risk appetite and (mis)pricing: reexamining the beta-return relation through the lens of time-varying risk aversion.

Understanding Portfolio Effects of U.S. Equity Market Concentration (D. E. Shaw)

Equity concentration can challenge common approaches to managing risk and producing alpha. Understanding concentration’s drivers may allow investors to better account for its effects.

Is Modern Investing Still in the Dark Ages? (Optimal Momentum)

Years from now, when there is more research showing the efficacy of quantitative investing, investors may move beyond the dark age of strategic asset allocation and buy-and-hope.

Concentrating on Concentration (Elm)

Are investors who react to concentration by reducing equity exposure or deviating from market weights more likely to hurt themselves than help themselves? Evidence points to yes.

The Total Portfolio Approach (Alliance Bernstein)

The total portfolio approach offers extra flexibility and focus on investors’ ultimate goals, which could spur TPA adoption much more broadly in years to come amid a new investment regime.