PORTFOLIO ANALYTICS STRATEGY (PAS)

James McDonald, Nick Biedermann, Daniel DelGrande, Brett Muhlada and Robert Norris
Published: 26 September 2019

According to modern portfolio theory, when constructing a portfolio, investors endeavor to maximize the returns on their investments for a given level of risk or to ‘optimize’ their portfolio’s risk-return. In order to build any optimized portfolio, one must first be able to quantify the amount of risk being taken on and the potential returns on investments. Therefore, a critical objective of all wealth managers is to understand risk and to make risk-informed investment decisions in their client portfolios. A robust, portfolio risk analytics strategy is essential.