• 60/40 Revisited: Risk/Return Assumptions Require Imagination in Today’s Environment

    Traditional expectations of the 60/40 stock and bond portfolio may be due for a rethink. From today’s yield levels, bonds simply can’t contribute to a portfolio the way they historically have. For advisors and other allocators, this could mean shifting assets away from fixed income and into alternatives if they want to preserve the same risk and return profile that the 60/40 portfolio has historically delivered.

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  • Adding Alpha and Keeping Clients Invested

    Adding Alpha and Keeping Clients Invested

    In the next few years, a client’s evaluation of their advisor will boil down to the professional’s ability to do two things: add alpha and keep them invested. True, these have always been core components of an advisor’s role, but in the coming years they will take on added significance. Why? It’s a function of a low-return environment, and the psychological roller coaster that is likely to unfold.

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  • The Importance of Downside Protection

    The Importance of Downside Protection White Paper promo

    The ability to pare back losses during the inevitable downturns that come with investing, may actually matter more to the end goal than eking out every bit of a bull market’s gains. As the current U.S. equity bull market continues—the longest run ever—the importance of mitigating loss is worth remembering.


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  • Differences Among Long/Short Equity Funds

    Differences Among Long/Short Equity Funds thumbnails

    Long/short equity funds are one of the largest categories of single-strategy alternative mutual funds Morningstar tracks. Beware: the fund lineup is as diverse as it is deep. Individual long/short fund characteristics vary considerably. Without careful analysis, advisors risk picking a fund that performs quite differently than expected, or invites unintended risks into their client’s portfolio.

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  • Understanding Alternative Funds

    As alternative mutual funds proliferate, Morningstar faces a classification conundrum: How can single categories include funds with entirely different characteristics? The question has deep implications for advisors.



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