Understanding Private Clients
Overview of Private Clients Private wealth management refers to investment management and financial planning for individual investors. The private wealth …
CFA
Behavioral Biases in Asset Allocation
Loss aversion is a bias in which investors dislike losses more than they like gains. This makes it difficult for investors …
Adjusting Strategic Asset Allocation
It is unlikely that the initial optimal asset allocation will be applicable for the entire lifetime of any portfolio. In …
Asset Allocation for Taxable Investor
In the presence of taxation, pretax, after-tax risk, and return characteristics may be significantly different. For this reason, taxable entities …
Constraints in Asset Allocation
An asset owner must consider a number of constraints when modeling and choosing among asset allocation alternatives. Some of the …
Goals-Based and Miscellaneous Approaches
The goals-based approach to asset allocation is useful for individual investors, who typically have a number of (sometimes conflicting) objectives, with different …
Liability Relative Asset Allocations
Liability-relative asset allocation is aimed at the general issue of rendering decisions about asset allocation in conjunction with the investor’s …
Factor Based Asset Allocation
An alternative approach used by some practitioners is to move away from an opportunity set of asset classes to an opportunity set …
Risk Budgeting Approach
There are three aspects to risk budgeting: The risk budget identifies the total amount of risk and allocates the risk …
Monte Carlo Simulations and Addressing Criticisms of MVO
Monte Carlo Simulation Monte Carlo simulation complements MVO by addressing the limitations of MVO as a single-period framework. In the …