Portfolio for the Future™

A practitioner’s guide to the five essential marks of effective capital allocation

In a rapidly shifting economic and investment landscape, CAIA Association is here to declare the emergence of a new paradigm for investors — one where allocators need to work smarter and more creatively to deliver client outcomes.

This much is certain: The traditional 60/40 portfolio allocation is no longer enough. The opportunity for alpha is not gone, but the low-hanging fruit has long been harvested, and the path toward higher absolute returns has gotten far more nuanced.

Executive Summary

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The investment industry needs to be reoriented back toward a north star of sophisticated portfolio construction, one that prioritizes client and beneficiary outcomes in a long-term, sustainable way.

John L. Bowman, CFA, Executive Vice President, CAIA Association
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How can investment professionals meet their clients' needs under ever-changing economic and market conditions? We call future-proofed portfolios the Portfolio for the Future™.

Full Report

The five distinct marks of the Portfolio for the Future™ are the defining features of all-weather portfolios that meet the challenges of the global economy and capital markets.

In our exclusive new practitioner’s guide, some of the most respected thought leader-practitioners in our industry explore the implications that will shape client outcomes.

1

Broadly Diversified

By Mark Anson, Commonfund

2

Less Liquid

By Andrea Auerbach, Cambridge Associates

3

Rooted in a Fiduciary Mindset

By Roger Urwin, Thinking Ahead Institute

4

Actively Engaged

By Anne Simpson, Franklin Templeton

5

Dependent on Operational Alpha

By Ashby Monk, Stanford University

The Portfolio for the Future™ is CAIA Association’s contribution and call to action for transformational investment management.

Investors today face expectations that go well beyond traditional notions of fiduciary duty or asset stewardship.

Ariel Fromer Babcock, CFA, Managing Director and Head of Research, FCLTGlobal