Category Archives: Asset Allocation & Portfolio Management

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Asset Allocation II “There is only one free lunch in investing, and this is asset allocation….Over time, it consistently leads to higher returns and lower risk.” (“Krawcheck stakes her new claim” This blog should be read in conjunction with the … Continue reading →

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Balanced Portfolio: Simple and Cheap ETF Implementation Why is this important? Because over a lifetime of saving for retirement, total assets accumulated at 1.5% and 3.0% annual fees are respectively 23% and 46% lower than those resulting from 0.4% fees … Continue reading →

Concentration vs. Diversification This topic on “concentration” was triggered by a number of recent articles about managers focusing on concentrated portfolios, the latest a blog by Jonathan Chevreau on “Steadyhand- A fund family for mutual fund sceptics” . Chevreau talks … Continue reading →

‘Core-Satellite’ Investment Approach (Originally posted December 13, 2007; re-posted in 2012) The debate about advantages of active vs. passive investing should be over. The overwhelming evidence suggests that it is extremely difficult to beat the indexes on a sustained basis, … Continue reading →

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Portfolio Management Investment Strategy Given a Strategic Asset Allocation (the proportions/weights of the various asset classes), then you must find the appropriate vehicle to implement each asset class in the portfolio. For each asset class one can choose a passive … Continue reading →

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  Asset Allocation It is well known that risk and return are closely related. Higher returns are generally accompanied by higher risk (or variability of returns, usually measured by standard deviation of returns). For example, CDs or GICs (up to … Continue reading →