Windham Insights Series

Windham Labs featured on WealthTech Club

March 18th, 2019|

Earlier this year, we met with Vasyl Soloshchuk of WealthTech Club for a series of conversations about what we do here at Windham Labs. We discussed the baseline from which we conduct our research and build our products, the direction of fintech, and some of the innovations behind our platform. WealthTech Insights #54: Big Data and Analysis: Innovation vs. Convention Windham Labs: Sophisticated Analytics and Smart Wealth Management Let us know what you think!

The 2019 Guide to Asset Allocation

February 13th, 2019|

In the 65 years since Harry Markowitz formalized the theory of asset allocation, academics and practicing investment professionals have sought to master the process, to solve the puzzle that is investment risk, and to find a “fool-proof” way to protect themselves from loss. As one of the most important challenges in the portfolio construction process, the rules and nuances of asset allocation continue to surprise us in an evolving market. In this guidebook, we begin by going back to the fundamentals. Each chapter focuses [...]

Future Value

February 11th, 2019|

Suppose we want to estimate the future value of an investment based on its return history. This problem, at first glance, might seem pedestrian. Yet it involves subtleties that confound many financial analysts. Some analysts argue that the best guide for estimating future value is the arithmetic average of past returns. Others claim that the geometric average provides a better estimate of future value. The correct answer depends on what it is about future value that we want to estimate. Let us proceed with a quick review of [...]

Financial Advisors in 2019: What to Focus on and Why

January 17th, 2019|

We’re halfway through the first month of 2019, which means that most of us have already given up on the New Year’s resolutions we made so optimistically on January 1st. Even though you may have abandoned your resolve to drink less coffee this year, we invite you to consider three NEW New Year’s resolutions and set yourself up to be an even better financial advisor in 2019. These goals will help you meet and manage client expectations throughout the year, and don’t worry—we’ve provided our own [...]

The Pros and Cons of Outsourced CIOs

November 19th, 2018|

In the years following the global financial crisis, investment managers of all kinds have been under increased scrutiny when it comes to accountability, reliability, and trust. The need for more sophisticated investment strategies consequently requires more sophisticated investors, and many firms now face a difficult question: Is our in-house investment team the best possible option when it comes to managing our portfolios? Many firms are now choosing to reinforce their investment expertise by engaging an outsourced-Chief Investment Officer. In the following article, we will [...]

After the Allocation: Portfolio Rebalancing 101

November 9th, 2018|

After the Allocation: Portfolio Rebalancing 101 According to a Wells Fargo/Gallup survey, over 30% of investors would rather sit in an hour of traffic than rebalance their portfolios. Which, one can deduce, indicates that roughly one third of investors spend at least sixty unpleasant minutes when the time comes to rebalance! In this article, we seek to demystify and simplify the rebalancing process in an effort to save investors time, frustration, and confusion. Why do we need to rebalance portfolios? When you first construct a portfolio for [...]

Case Study: Asset Management Group of Top 10 National Bank

October 3rd, 2018|

We spoke with Samantha*, the Chief Investment Strategist in the Asset Management division of a large national bank* to discuss how the Windham Portfolio Advisor helps her and her team achieve their goals. Samantha and her team are responsible for developing all of the formal strategic and tactical asset allocation recommendations across the asset management business at her company. They develop 10-year and multi-year capital market assumptions and produce thought-leadership content for various publications. Q: What caused your team to look for a tool like the WPA? What [...]

Two Things About Performance Fees

September 6th, 2018|

Two Things About Performance Fees Institutional investors continue to allocate a significant and growing fraction of their portfolios to alternative investments such as hedge funds, private equity, and real estate, notwithstanding the challenges these relatively illiquid assets posed to them during the financial crisis. We suspect that investors now pay considerable attention to their liquidity needs and factor these needs into their decision to invest in alternative investments. We are fairly confident, though, that most investors do not fully appreciate the consequences of a second feature of alternative [...]

Investment Policy Statements

August 22nd, 2018|

The Benefits of Using an Investment Policy Statement An investment policy statement is a written agreement between a portfolio manager and a client, outlining the client’s expectations and how the advisor intends to fulfill those expectations. It formalizes the investment goals of the client, solidifying and defining a plan before the fiduciary relationship begins. An investment policy statement is typically drafted after the portfolio manager has met with the client and established their investment objectives, liquidity requirements, and risk tolerance. It displays all of the information that the [...]

Global Market Portfolios, Part Two: Methodology

August 8th, 2018|

Global Market Portfolios Part Two: Market Portfolio Methodology Introduction The global market portfolio is a market capitalization weighted representation of all tradable and non-tradable asset classes in the world market, displaying the average portfolio held by investors. It isn’t affected by unsystematic risk and can therefore be used to measure the amount of systematic risk within the framework of the Capital Asset Pricing Model (CAPM). If you’re interested in further reading on the importance and usage of the global market portfolio, please visit part one. Since the true [...]