More asset owners may adopt ‘total portfolio approach’ to counter market concentration risk
Research shows that TPA adopters have a performance edge of 1.3% per annum over portfolios using strategic asset allocation
[SINGAPORE] Institutional interest in the total portfolio approach (TPA) to help mitigate concentration risk is on the rise, noted Hooman Kaveh, executive chair of Marsh’s investment platform.
But there are challenges to its implementation. One is the governance approach which needs to be holistic over the entire portfolio.
Second is access to data analytics that can generate deep analyses of asset classes including private assets in real time.
