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| | | | Investment Consulting | | | Uniting modern portfolio theory with practical investment management, Ibbotson Associates provides asset allocation consulting services to institutional clients ranging from insurance providers to broker-dealers and mutual fund companies. Institutions seeking tailored model portfolios, fund classification schemes, and risk tolerance questionnaire design from an independent source rely on Ibbotson Associates and its support services. Ibbotson consultants have extensive experience in forecasting and employing both mean-variance optimization and multi-scenario sensitivity analysis while constructing portfolios. | |
| | | | Risk profile questionnaire design: Asking the right questions to determine risk tolerance | | |
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| | | For each client, Ibbotson Associates develops a customized questionnaire and scoring system designed to evaluate the risk tolerance of individual investors. Extensive experience, paired with an understanding of investor behavior and concerns, helps create sound questionnaires that yield results needed to develop an effective investment program. | | | | | Model portfolio construction: Developing a menu of qualified options | | |
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| | | Principles of modern portfolio theory direct the process Ibbotson Associates uses to develop model portfolios. First, Ibbotson consultants forecast the long-term returns and volatility of each asset class. Mean-variance optimization, resampling, multi-scenario sensitivity analysis, and practical experience are applied to develop asset class models with the appropriate expected levels of risk and return. Finally, investment managers are analyzed and specified to populate the asset class models. | | | | | Investment classification: Grouping by peers using returns-based style analysis | | |
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| | | Using returns-based evaluation and modeling, consultants examine the investment options in a client’s current lineup. Classifying each investment helps determine asset class exposure to identify the choices that fit the strategic asset allocations offered within an investment program. | | | | | Diversified portfolios: Monitoring and rebalancing investments | | |
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| | | On a regular basis, Ibbotson Associates reviews the status of the investments within a portfolio to make sure that the asset allocations remain in balance. Ibbotson consultants and portfolio managers look for style drift and performance that is not meeting expectations. |
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| | The Morningstar Investment Management division is a division of Morningstar and includes Morningstar Associates, Ibbotson Associates, and Morningstar Investment Services, all registered investment advisors and wholly owned subsidiaries of Morningstar, Inc. All investment advisory services described herein are provided by one or more of the U.S. registered investment advisor subsidiaries. | |
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