Modern Asset Allocation for Wealth Management
Modern Asset Allocation for Wealth Management is an authoritative resource that bridges the gap between modern perspectives on asset allocation and practical implementation. This rigorous manuscript covers all aspects of creating client portfolios: setting client risk preferences, deciding which assets to include in the portfolio mix, forecasting future asset performance, and running an optimization to set a final allocation. It offers professional wealth managers and researchers an up-to-date and implementable toolset for managing client portfolios.
Praise for Modern Asset Allocation for Wealth Management
"Modern Asset Allocation for Wealth Management succeeds in its ambitious goal of making Asset Allocation more intuitive and practical. By accounting for behavioral biases, psychometric testing, and financial goals, to name a few, David Berns enables advisors to implement Asset Allocation systematically with a sound scientific underpinning. This is a must-read for any advisor who wants to truly understand why we invest the way we do and how best to work with clients."
― Michael Pompian, CFA, CAIA, CFP, Founder and CIO, Sunpointe Investments
"Historically, Modern Portfolio Theory (MPT) has been an insightful―but utterly useless―tool of modern finance. David Berns flips this situation around and outlines exactly how investors can make MPT great again. I learned so much from this book. Read it."
― Wesley R. Gray, PhD, CEO, Alpha Architect
"David Berns has blazed a trail through the wilderness that lies between the practical challenges of wealth management and the leading edge of quantitative finance. Along the way, readers will learn innovative strategies to confront diverse investor preferences, taxes, risk premia strategies, estimation error, non-normal distributions, and many other real-world challenges. This pioneering guide is rigorous, clear, and relevant. No wealth manager should leave home without it."
― Will Kinlaw, Senior Managing Director and Head, State Street Associates
"Modern Asset Allocation for Wealth Management smartly incorporates behavioral theory to improve client risk preference assessment. The realization that clients don't require the textbook version of an optimal portfolio, and that financial planners should focus on creating a portfolio that clients will stick with during down markets, is an important contribution to the advancement of Wealth Management."
― Michael Guillemette, PhD, CFP, Professor of Personal Financial Planning, Texas Tech University