Forthcoming research examines societal income distribution in the statistical sense – such as its volatility, skewness, and kurtosis – and relates it to the macro risk distribution faced by investors. This analysis tests the hypothesis that investors’ efforts to reduce volatility reallocates it to individuals in the form of income volatility, and raises the question – Are investors’ risk management practices contributing to inequality?
Risk and Resilience | Report
21 December 2018 - Boards and executives of long-term funds, such as pension plans, sovereign wealth funds, and endowments, have a challenging problem. They need to manage those portfolios to meet their long-term purpose, which may be decades or more into the future. Yet no fund has the luxury of looking only to that long-term time horizon. Each must also meet expectations in the near term in order to continue in its role and with its investment strategy.
Risk and Resilience | Video
10 February 2021 - Forthcoming research examines societal income distribution in the statistical sense – such as its volatility, skewness, and kurtosis – and relates it to the macro risk distribution faced by investors. This analysis tests the hypothesis that investors’ efforts to reduce volatility reallocates it to individuals in the form of income volatility, and raises the question - Are investors’ risk management practices contributing to inequality?
Risk and Resilience | Video
14 January 2021 - “Time diversification” is a principle that an investor’s statistical probability of loss decreases as the holding period increases. Long-term investors may overinterpret this statistical principle to indicate that risk in all of its forms is lower. In fact, longer holding periods also expose investors to a greater scale of potential losses and to more experience with turbulence. Our September webinar introduced the way in which these patterns have implications for diversification and asset allocation, and the implications also extend significantly to the way in which long-term investors define and estimate risk.