Highlights Include:

  • Traditional approaches to asset allocation may not produce the long-term returns that corporate pension plans need to achieve their goals.
  • Portable alpha overlays offer a flexible and scalable means for asset owners to potentially enhance the expected returns of their allocations.
  • Overlays can be implemented with high capital efficiency, without reducing exposure to longer-term strategic investments.
  • Multi-asset absolute return strategies that seek to capture risk premia and mispricings across asset classes are a good fit for portable alpha overlays, since they may provide desirable characteristics such as cash efficiency, liquidity, scalability and diversification.
  • In contrast to other alternative allocations, portable alpha overlays can be implemented in existing portfolios without changing underlying portfolio allocations and/or existing active managers.
Marco Aiolfi, PhD
Managing Director and Director of Systematic Multi-Asset Strategies
Lorne Johnson, PhD
Managing Director and Director of Institutional Solutions
Yesim Tokat-Acikel, PhD
Managing Director and Director of Multi-Asset Research

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