Abstract
Much has been written about the shortcomings of the traditional approach to asset allocation. Traditional asset allocation policies can be characterized by relatively static asset allocation and by diversification across asset class building blocks. Exactly how risk factors should be included in the portfolio construction process is still a nascent area of research and is fiercely debated among practitioners. Although numerous research papers explore this topic, they tend to be theoretical, and for this reason, this article has a stronger focus on the practical aspects of implementation. Rather than provide definitive answers here, the authors aim to share their reflections on this topic, following feedback from practitioners and discussions that took place in client roundtable events organized by S&P Dow Jones Indices to promote dialogue with industry experts.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
