Active equity strategies that are highly benchmark-centric will generally have a minimal impact on fund-level volatility. Since most US institutional portfolios are overwhelmingly dominated by their equity exposure, any incremental tracking error will be submerged by the beta effect. Positive...

Some evidence supports the intriguing conjecture that P/Es in the U.S. market may decline in times of both significantly lower, as well as significantly higher, real interest rates. The P/E response pattern would then resemble a tent that angles downward at both ends. For pension liabilities...

The complexities of standard optimization can obscure the intuitive decision process that should play a major role in asset allocation. The use of allocation alphas and betas - with U.S. equity as the beta source - facilitates an intuitive approach and greatly simplifies the decision process. A...

This article presents a highly intuitive approach for visualizing return distributions for a basic form of cash/equity allocations. This “percentile fan” framework can help clarify some of the key risk-return trade-offs in intuitive ways for a wide set of asset owners. In particular,...