Making Your Portfolio About #Goals

If you’re a social media junkie, you have probably seen “#goals” in your timeline. In most cases, the hashtag is referring to an attractive couple or an aesthetically pleasing plate of food. But what if people found your investment portfolio to be #goals? What if allocators shifted their thinking to aligning their portfolio allocation to targeted and measurable outcomes? In his article, “Outcome-Oriented Alternative Investments,” Masao Matsuda, CAIA explores this concept. This Viewpoint provides a high-level overview of the applicability of this concept, and shows how investment performance measurement can morph from a “relative to a benchmark” game to more of a “relative to a stated goal” game. Read the full summary below.