Presented on November 28, 2018 Professional Fiduciary Association of California Silicon Valley Chapter
Through Investment Policy Statements and implementation of their resulting asset allocation, a portfolio’s Compensated (aka non-diversifiable) Risk strategies are usually well managed, while the management of Uncompensated (aka diversifiable) Risk (UCR) has been usually ignored. This is because of years not being able to easily measure UCR. The result has been non-management of UCR. Big Math has changed that. Now fiduciaries can fulfill their duty to monitor, measure and manage in order to obtain diversification alpha and lower volatility while complying with the law!
Download PDF: MeasureManage