Risk Management Archives - Page 3 of 3 - Fundopedia

Asset Allocation…

Asset Allocation Funds

7 Jun 2013August 26, 2025

An asset allocation fund is a portfolio of mix of equity, fixed income securities, and cash equivalents; asset allocation funds have access to main asset classes exposure via one single investment.…

U.S. Mid Cap Equity Fund Investment Philosophy and Approach (Core, Value, Growth)

27 Feb 2013July 1, 2013

In the U.S., mid-capitalization companies are typically defined as those having a market capitalization range of $2 billion to $10 billion. During the period of January 1979 through December 2012,…

Alternative Investments…

Alternative Investments in a Portfolio

23 Jan 2013September 12, 2023

Traditional asset classes such as stocks, bonds, and cash tend to be highly correlated with each other during the down markets. The long-only investments may not meet the changing needs…

Due Diligence…

The Selection and Termination of Investment Managers

6 Dec 2012August 1, 2025

Investment Manager Selection & Due Diligence Investors demand actively managed investment strategies so they pay extra to hire investment consultants; consultants perform manager due diligence, and advice investors in the…

Financial Modeling…

Robert Merton’s Approach for Macrofinancial Risks 罗伯特·默顿的主权信用风险模型

31 Oct 2012July 1, 2013

Traditional Macrofinancial framework vs. Robert Merton’s Macrofinancial Framework The traditional approach to measure sovereign credit risk is based upon the assessment of a country’s ability and willingness to service its…

Asset Allocation…

Asset Allocation Framework for Individual Investors

13 Sep 2012August 26, 2025

The global financial crisis changed strategic asset allocation framework, as investors are more risk conscious and especially mindful of market liquidity and the importance of credit risk in sovereign bond…

One Man’s Junk May Be Another’s Treasure – Junk Bonds Market

27 Aug 2012August 26, 2025

Many companies rated below investment grade are creditworthy enough and should have access to the new issue market. Weaker companies simply could issue new bonds at higher coupons. On one…

Alternative Investments…

Allocation in Hedge Fund of Funds

13 Aug 2012August 26, 2025

One of the main reasons that institutional investors include hedge funds in their portfolios is the expected diversification benefits with existing array of investment opportunities. In the U.S., institutions such…

Alternative Investments…

Endowment Model, Liquidity Stress Test, Liquidity Schedule

3 Aug 2012July 20, 2023

All investment portfolios should be individually structured to meet clients’ objectives, cash flow requirements, and their tolerance for risk. Similar to diversification across asset classes, market capitalization, and geographic exposures,…

Financial Modeling…

Portfolio Optimization, Risk Aversion, Constraints

21 Jul 2012March 31, 2025

Portfolio Optimization Since an investor can trade risk for return along the efficient frontier, the motivation of optimizing a portfolio originates from the idea that a greater expected return for…

Asset Allocation…

Risk Allocation, Asset Allocation, Tracking Error Allocation

17 Jul 2012March 31, 2025

Risk allocation emerged in the late 1900s, in response to concerns about the level of risk being accepted in a portfolio. The process involves setting up a plan for how…