How Should We Allocate? Asset Allocation and Allocation of Resources Just over 30 years ago, a seminal paper was published about the various contributions to portfolio returns. The authors examined US pension plans to try and ascertain the contributions of asset allocation, market timing and security selection. Their conclusion was that on average close to 94% of a portfolio’s
How Active Managers Can Reinvent Themselves The biggest trend in the asset management industry in recent years has been the rise in market share of low cost passive instruments at the expense of more traditional actively managed funds. Slightly more than a third of US assets are now in passive funds compared to 20% a decade
Fund Selector checklist - part 3 As you might recall, we have grouped all issues related to fund rating into 3 categories: Price, People, Portfolio. In part 1 and part 2 we dealt with the issues related to the cost of the fund and to the personal that manages the fund. In this final part we
Fund Selector checklist - part 2 As you might recall, we have grouped all issues related to fund rating into 3 categories: Price, People, Portfolio. In our previous post we dealt with the issues related to the cost of the fund. In this post we will deal with issues related to the personal that manages the
Fund Selector checklist - part 1 Rating a fund is a complex process. There are many issues that need to be taken into account besides historical returns even though that tends to dominate. To simplify matters, we have grouped all issues into 3 categories: Price, People, Portfolio. While by no means exhaustive, these are some of
