Many asset owners and portfolio managers develop proprietary return forecasting models, but use third-party models to measure risk. While there may be a significant overlap between the factors used in alpha and risk models, at times they may be misaligned. For managers who optimize their portfolios, the optimizer will tend to amplify the component of alpha that is not aligned with the risk model; this may lead to unintended portfolio exposures. In addition, unnecessary trading may result. Both of these unintended consequences may impair portfolio performance.

Please join us for a webinar where we will discuss a practical process for detecting and addressing misalignment in a quantitative portfolio construction setting with BARRA Portfolio Manager (BPM).


50-60 minutes
Session 1
  Register now
Tuesday, Oct 11, 2016, 11:00 p.m. EDT
Session 2
   Register now
Wednesday, Oct 12, 2016, 9:00 a.m. HKT


Demonstrate how to use BARRA Portfolio Manager (BPM) to detect and understand the nature of misalignment between alpha and risk factors
Show how the MSCI US Total Market Equity Model (USTMM) that includes Systematic Equity Strategies often used as alpha factors can improve alignment
Demonstrate implementation of misalignment remedies in BARRA Portfolio Manager (BPM), including a new Rescale Alphas approach


The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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