The number one question when portfolios don’t deliver outcomes as expected is ‘why?’. Over the past four years, Northern Trust Asset Management has individually partnered with institutional investors and consultants around the globe to try and find the answer. After examining more than 200 portfolios and 1,000 investment strategies worth more than $200bn from a quantitative lens, six common drivers across all investor segments emerged. This session seeks to provide new insights gained from resulting study: The Risk Report. Key discussion points include:
- Magnitude of uncompensated risks diluting excess returns;
- New perspective of the “cancellation effect”;
- The most common hidden risks with style tilts;
- Over diversification - when diversification backfires.