Practical Applications of Hobbled by Benchmarks

Abstract

Practical Applications Summary The 60/40 domestic stock/bond benchmark is still the mainstay of many U.S. corporate pension fund policy portfolios. In Hobbled by Benchmarks , published in the special 2018 multi-asset issue of The Journal of Portfolio Management, authors Mike Aked, Rob Arnott, Omid Shakernia and Jonathan Treussard argue that investors must rethink this paradigm due to the greater alpha generation potential available within a more diversified global multi-asset portfolio. They illustrate that potential by applying academically recognized risk factors in a long-only, multi-asset context.