Portfolios – How much RoT is there?

You are pitched multiple ‘tailored’ portfolios that have seemingly very similar risk-return expectations. Beyond the regulatorily mandated disclosures, the distributors/allocators generally point to the historical performance of the portfolios and forecasted performance under scenarios. In Table 1 we take an example of five portfolios with near identical first order risk-return profiles - how would you select? Table 1 - Model Portfolios The baseline financial analysis of the portfolios relies on two baseline facets: (a) the performance measures being considered, and (b) the assumptions embedded in the simulations. Where,

Continue reading