Listen on The Move
Explore the evolving world of portfolio construction with Leslie Alba, CFA, CIBC Asset Management's Head of Portfolio Solutions, who oversees $90-billion in AUM. Discover how to move beyond traditional diversification and embrace a total portfolio approach, balancing risk exposures for uncertain markets. Learn actionable insights for managing expectations and navigating market volatility.
Chapters:
00:00 Introduction to Leslie Alba
02:16 Leslie’s Career Journey and Philosophy
06:00 Promising and Challenging Market Dynamics
08:16 Bonds: Diversification and 60/40 Limitations
11:48 Total Portfolio Approach and Regime Shifts
16:42 Evolving Capital Market Assumptions
23:29 Purpose-Driven Portfolio Construction
30:18 Overcoming Dogmatism and Risk Tolerance
35:02 Private Markets and Investment Selection
39:30 Total Investment Solutions for Advisors
44:22 Behavioral Finance and Staying Invested
50:21 CIBC’s Client-Centric Value Proposition
Key Takeaways:
• Rethink Diversification: Understand that traditional 60/40 portfolios may not offer sufficient defensive positioning due to overlapping risk factors.
• Adopt a Total Portfolio Approach: Manage portfolios holistically, focusing on achieving client objectives and balancing risk exposures rather than isolated asset classes.
• Embrace Alternatives: Consider diversifying into alternatives to reduce correlation and economic risk, as they react differently in various market conditions.
• Prioritize Purpose: Anchor portfolio design around client objectives and the unique purpose each asset class or strategy serves to achieve those goals.
• Manage Behavioral Biases: Equip clients with insights and plans to stay invested and calm during market volatility, mitigating emotional decision-making.
Resources:
Connect With Leslie Alba:
LinkedIn
Subscribe to Insight is Capital: Hit the Subscribe button
#investmentstrategy #portfoliomanagementservices #assetallocation #financialplanning #portfoliomanagement
