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September 30, 2009

Adapting ALM to the Private Wealth Management Process

I recently came across an interesting article that nicely summarizes one of the current shortfalls of in the Wealth Management Industry: the lack of proper constraint definition ( here focused on ALM) in the client portfolio construction process.

The Paper

The authors argue for a construction process similar to those employed by many pension funds.
To my way of thinking, this makes a lot of sense.

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