Advisor Perspectives Article

New tools to prove you acted as a fiduciary Bob Veres recently conducted a review of SmartRisk Pro, one of the risk tools Covisum recently acquired through PrairieSmarts. Here’s an excerpt: With Smart Risk, you can import a client’s portfolio holdings from Orion, Redtail or a spreadsheet, and the software will calculate your “downside expectation” Read more about Advisor Perspectives Article[…]

How should you measure portfolio diversification?

Diversification is achieved when the gains in certain holdings of your portfolio offset the losses of other holdings. It means that you don’t have all (or most) of your eggs in the same basket. Diversification is critical because it reduces the impact of (bad) luck and isolated events on the overall performance of your portfolio. Read more about How should you measure portfolio diversification?[…]

The world’s best value markets – Investors Chronicle

Buy low, sell high is one of the oldest maxims in investment and with developed markets inflated by several rounds of quantitative easing (QE) by major central banks, the hunt for the cheapest markets is global. By using backward- and forward-looking valuation techniques we can uncover opportunities which, thanks to low-cost exchange traded funds (ETFs), Read more about The world’s best value markets – Investors Chronicle[…]

How indifferent are you to risk? – Investors Chronicle

Understanding capacity to absorb a big loss is one of the starting points in deciding investment strategy. A sensible way to look at this, is in terms of the size and frequency of losses a portfolio can be potentially exposed to, given the timeframe the investor is hoping to be rewarded in. Read More: Investors Read more about How indifferent are you to risk? – Investors Chronicle[…]

Ideal portfolio: asset diversification is cheaper than you might think – Investors Chronical

A basic tenet of modern portfolio theory (MPT) is that logical investors want to achieve an ‘efficient portfolio’; where no other combination of available assets carries a higher expected return for the same degree of risk. Harry Markowitz, the founding father of MPT, described diversification as “the only free lunch in investing” while the right Read more about Ideal portfolio: asset diversification is cheaper than you might think – Investors Chronical[…]

The value of risk management – Investors Chronical

  We analysed U.S. versions of the three Investors Chronicle Ideal Portfolios (cautious, balanced and adventurous strategies – see diagram for allocations). There was also a complex adventurous portfolio that specified S&P 500 holdings, spread the equities allocation internationally, and added a property exposure to US real estate. The portfolios were assessed according to a Read more about The value of risk management – Investors Chronical[…]

Portfolio risk modeling philosophy

High quality data is our passion We strive to build models that are useful to the people deploying at-risk capital in the real world. Consequently, the inner core of the SmartRisk modeling philosophy is empirical evidence. The measuring stick of our model’s success is whether it leads to wise decision making, not whether it is Read more about Portfolio risk modeling philosophy[…]

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