Benoit Louis’ Post

Discover how to evaluate leadership, governance, alignment with shareholder interests, risk management, and succession planning to make informed investment decisions that go beyond financial metrics. My latest for Barchart #InvestmentInsights #BusinessEvaluation #LeadershipAnalysis #GovernanceMatters #ShareholderAlignment #RiskManagement #SuccessionPlanning #InformedInvesting #BeyondFinancialMetrics #SmartInvestor https://lnkd.in/eZJeRQdg

While large asset owners are confident their portfolios are resilient to market, regulatory and environmental risks, they've taken steps over the past 12 months to reposition their portfolios. Andrew McDougall offers insights on adjustments they're making to fixed income duration and the liquidity profile of portfolios. #investing #markets

While large asset owners are confident their portfolios are resilient to market, regulatory and environmental risks, they've taken steps over the past 12 months to reposition their portfolios. Andrew McDougall offers insights on adjustments they're making to fixed income duration and the liquidity profile of portfolios. #investing #markets

While large asset owners are confident their portfolios are resilient to market, regulatory and environmental risks, they've taken steps over the past 12 months to reposition their portfolios. Andrew McDougall offers insights on adjustments they're making to fixed income duration and the liquidity profile of portfolios. #investing #markets

While large asset owners are confident their portfolios are resilient to market, regulatory and environmental risks, they've taken steps over the past 12 months to reposition their portfolios. Andrew McDougall offers insights on adjustments they're making to fixed income duration and the liquidity profile of portfolios. #investing #markets

While large asset owners are confident their portfolios are resilient to market, regulatory and environmental risks, they've taken steps over the past 12 months to reposition their portfolios. Andrew McDougall offers insights on adjustments they're making to fixed income duration and the liquidity profile of portfolios. #investing #markets

While large asset owners are confident their portfolios are resilient to market, regulatory and environmental risks, they've taken steps over the past 12 months to reposition their portfolios. Andrew McDougall offers insights on adjustments they're making to fixed income duration and the liquidity profile of portfolios. #investing #markets

When we build portfolios we often make decisions related to policy risk, and active risk. I think we probably think these things through even if we are not specifically identifying these terms. Policy risk, also known as strategic risk, refers to the risk inherent in the long-term asset allocation decisions of a portfolio. This involves how investments are distributed across major asset classes like equities, fixed income, and cash. This is where I think we should spend the majority of our time. This is a long-term focus and is driven by asset allocation. A lot of this is our attempt to diversify systematic risks and set up our portfolios for long-term success. Active risk (aka - Tracking Error) happens when portfolio managers make active decisions that deviate from their benchmarks in an attempt to add alpha. This is where they try to capture non-systematic risks that may be specific to certain securities they are buying or selling. I think naming these risks is important to help create better portfolios. Having an understanding of your long-term focus will lead to better decision-making and diversification. #InvestmentManagement #PortfolioManagement #RiskManagement 

While large asset owners are confident their portfolios are resilient to market, regulatory and environmental risks, they've taken steps over the past 12 months to reposition their portfolios. Andrew McDougall offers insights on adjustments they're making to fixed income duration and the liquidity profile of portfolios. #investing #markets

While large asset owners are confident their portfolios are resilient to market, regulatory and environmental risks, they've taken steps over the past 12 months to reposition their portfolios. Andrew McDougall offers insights on adjustments they're making to fixed income duration and the liquidity profile of portfolios. #investing #markets