Creating Equity Portfolios

The white paper, “Creating Equity Portfolios,” poses the question “Why do we recommend certain equity allocations?” The paper reviews the nuts and bolts of diversification and the factors we consider in forming equity portfolios. By considering data and research on different asset classes, including U.S. small cap and value, international equities, emerging market equities and U.S. and international REITs, we demonstrate how we allocate among funds and manage exposure to important risk factors. The result is an equity allocation that increases expected risk-adjusted return given investor-specific parameters related to tracking error and limiting maximum loss.

Please download the full white paper for more information.