Applying a Risk Budgeting Approach to Active Portfolio Construction

December 3, 2010 / by NEPC

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Active Risk Budgeting is an extension of asset allocation risk budgeting, a key underpinning of NEPC’s asset allocation approach.  Active Risk Budgeting allows investors to determine the composition of alpha risk in a portfolio and can reveal opportunities to improve portfolio construction and increase portfolio efficiency.

Topics: Research

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