We need to be better than ‘optimal’
An over-reliance on mean-variance optimisation has led to portfolios that fail to take into account the radical complexity of the real world and embrace ‘pretentious and unhelpful symbols’.
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Ignorance isn’t bliss
In an increasingly complex and inter-connected world, a broader perspective on risk is essential in helping investors navigate an uncertain future, writes Phil Edwards.
Opportunity in the making
It is more than ever a “market of credits” rather than a “credit market”, according to Mercer, affording those with rigorous research coupled with patience, capital and flexibility the potential
Income the key dimension
Risk should be defined as the inability to meet retirement income goals, so investors and their managers should forget alpha and other “distractions”, according to David Booth.
Equities sell down
To better manage downside risk, the second-largest UK local government pension scheme has a plan to gradually alter its equity allocation.
Macro diversification: How do investors diversify risk?
“Geopolitics does matter and how to navigate geopolitical events on a portfolio is challenging,” argues Tom Clarke, partner and portfolio manager at William Blair speaking at the Fiduciary Investors Symposium at Rhodes House, Oxford University. In a session dedicated to macro strategies for investors to best navigate today’s complex investment universe and diversify risk, Clarke argues that “hiding” from
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