The Risk Report: Analysis Reveals 6 Common Drivers of Unexpected Results

The number one question when portfolios don’t deliver outcomes as expected is ‘why?’ Over the past four years, Northern Trust Asset Management has individually partnered with institutional investors and consultants around the globe to help answer that very question. After examining more than 200 portfolios and 1,000 investment strategies totaling $200+ billion with a unique quantitative lens, six common drivers across all investor segments emerged. Join Michael Hunstad, Ph.D., Head of Quantitative Strategies, as he provides new insights gained from The Risk Report. Discussion includes: • Magnitude of uncompensated risks diluting excess returns • New perspective of the “cancelation effect” • The most common hidden risks with style tilts • Over diversification - when diversification backfires IMPORTANT This material is directed to eligible counterparties and professional clients only and should not be relied upon by retail investors. The information is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. Northern Trust and its affiliates may have positions in and may effect transactions in the markets, contracts and related investments different than described in this information. Investing involves risk- no investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Simulated past performance and actual past performance is no guarantee of future results. Northern Trust Asset Management is composed of Northern Trust Investments, Inc Northern Trust Global Investments Ltd, Northern Trust Fund Managers (Ireland) Ltd, Northern Trust Global Investments Japan, K.K, NT Global Advisors Inc, 50 South Capital Advisors, LLC and investment personnel of The Northern Trust Company of Hong Kong Ltd, Belvedere Advisors LLC and The Northern Trust Company. ©2020 Northern Trust Corporation: 50 South La Salle Street, Chicago, IL 60603 USA