Investment Management Network's Asset Allocation Summit

Investment Management Network's Asset Allocation Summit:

• Lamont (Monte) Tarbox participated on a panel at the Investment Management Network's Asset Allocation Summit in October in California. Monte was joined on the panel by Mike McCauley, Director of Investment Services at the State Board of Administration of Florida and Peter Freilinger from JPMorgan Securities. Monte and his co-panelists discussed how pension funds and other institutional investors have used the concept of "risk budgeting" to change the way they make asset allocation decisions and organize their investment programs. Monte noted that while the concept has merit, it heavily depends on financial derivatives and requires great confidence in the ability of active investment managers. Ultimately, few pension funds take this approach because such techniques create a whole new set of risks and governance challenges