The perfect storm of exceptionally low returns, increased risk levels and diminished diversification opportunities await all investors. The uncertainty is further exacerbated by the divergence of global monetary policies and investment regimes of US, European Union and Japan.
Does traditional asset allocation still work? In the search for alpha, should investors look to individual manager/security selection rather than broad market beta exposures as their main return generator?
To what extent should portfolios embrace the diversity of esoteric and often complex opportunities? There is no end to the granularity of active opportunities, but battle-scarred investors from the GFC remain haunted by liquidity ‘wounds’ and correlation disappointments. Should portfolios stay simple, focused on the long term and naively hope to ride through the volatility wave?
The promised land of factor investor brings a different paradigm of assessing portfolio risks, with academia endorsing its use for diversification over asset class buckets. Implementation remains a challenge.
The fifth annual [i3] Asset Allocation Forum endeavours to focus on investment decision-making, its trade-offs and how that can contribute to a more resilient portfolio for the institutional investor.
To see the photo gallery of this program, please click here.
