The effect of manager selection on tail risk exposure
A great deal has been written about how traditional asset allocation strategies have failed to shelter investors from “tail risk” events—that is, extreme market phenomena such as those experienced during the recent financial crisis. In this paper, we examine the role of portfolio manager selection in determining a portfolio’s exposure to tail risk, and we identify three research principles investment professionals can use to help mitigate investors’ tail risk.
Evaluating target date managers
requires digging deeper
In an ever-changing investment landscape, it is becoming exceedingly difficult to apply a standard approach to evaluating asset managers, even those focused on similar investment objectives. Investors, plan sponsors, and consultants generally rely on peer-group performance rankings when selecting and monitoring money managers. As managers use a wider range of strategies and securities in an effort to add value and effectively manage risk over time, the approaches used to compare these managers needs to evolve.
Still an Emerging Market for Emerging Markets Funds
Examines how defined contribution plans without a dedicated emerging markets fund are not only missing out on much of the diversification benefits of those markets, but also the opportunity to participate in a significant amount of the world's anticipated growth.
Wells Fargo Funds Distributor, LLC and GMO LLC are not affiliates.