Modern Asset Allocation for Wealth Management

Modern Asset Allocation for Wealth Management and the accompanying software offers advisors a guide to more accurately design portfolios for real-world client preferences while tackling the complexities of the asset allocation process. The author describes a unique framework that provides a modern yet intuitive system for creating real-world asset allocation portfolios. The book explains in detail how to create an investment portfolio from scratch. Step by step, the author shows how to set client risk preferences, decide which assets to include in client portfolios, forecast future asset performance, and blend assets together to form optimal client portfolios. The book is organized in the order in which each asset allocation task is carried out when creating a client's portfolio in practice. While practical in its approach, the framework presented is rigorous in its application in order to ensure a scalable process that financial advisors can rely on. The asset allocation solution presented rests on the tenets of behavioral finance and the foundations of modern financial economics. The framework also incorporates client financial goals into the asset allocation process systematically and precisely via a novel balance sheet system that is highly focused on risk management. And all tools are tied together with hyper awareness of estimation error and statistical robustness. Rather than presenting the entire review of asset allocation tools, the author puts the focus on a limited number of tools for each step of the process. The framework outlined offers a modern yet down-to-earth process that the wealth management community can confidently deploy today. This timely and authoritative book offers professional wealth managers and researchers the most current information and an implementable toolset for managing client portfolios.