A practical guide on which investment approach may best suit you.
Thomas Poullaouec, Head of Multi-Asset Solutions APAC
T. Rowe Price,
November 2021
Key Insights
There are various investment techniques to pursue predefined return and risk objectives. For multi-asset investors, the choice starts with the role of the benchmark in portfolio construction.
A benchmark-aware approach provides more transparency on portfolio outcomes as most of the portfolio’s risk and return comes from the benchmark.
A benchmark-agnostic approach can narrow the possible outcomes around the desired objectives but is more dependent upon the skills of the investment manager.
