Risk Letter | At the in-efficiency frontier

This second Active Asset Allocation « Risk Letter » looks at the delicate question of the choice of hypotheses, using the example of the efficient frontier. It touches upon the influence of an incorrect choice on asset allocation decisions and their consequences.

What do pension funds and institutional investors all have in common? They all start the investment process by defining their strategic asset allocation. As the asset allocation will be responsible for 90% of the investment results, useless to say that this is the most important investment decision…

Read the full Risk Letter below: