Financial Standard Comments - Model portfolios vulnerable to avoidable risks Many of the model portfolios used by financial advisers to meet investor objectives are susceptible to market shocks and hidden risks, according to a study by van Eyk's Portfolio X-Rays initiative. https://www.financialstandard.com.au/feed/latest?story=26328144 Tue, 19 Mar 2013 13:27:29 +1100 Tue, 19 Mar 2013 13:27:29 +1100 en-AU Copyright 2026 Financial Standard 5 Comment by Denis Carroll (CheckRisk LLP) CheckRisk applauds the coments made by Jonathan. Too often we see a blind faith in model portfolios without the necessary discipline of continually testing these portfolios for their effectiveness. Portfolios need to be stress tested regularly, particularly in these markets and the performance characteristics of portfolios need to be identified and measured to work out what is working and what is not. Only then can sensible repositioning decisions be taken.

Unfortunately some advisers still don't realise the importance of applying state of the art risk management techniques to their client portfolios. It's a lot harder to add value if you're not continually seeking to identify and reduce risks for which you're not being rewarded.

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]]> Denis Carroll (CheckRisk LLP) Tue, 19 Mar 2013 13:27:29 +1100