Arnerich Massena Publishes New White Paper: The Quest for Diversification: Choosing your asset class baskets



Arnerich Massena Publishes New White Paper: The Quest for Diversification: Choosing your asset class baskets

Portland-based investment firm Arnerich Massena, an independent investment advisory firm specializing in private wealth management, endowment & foundation, corporate consulting services, and impact investing strategies, is pleased to announce the publication of a new white paper: “The Quest for Diversification: Choosing your asset class baskets.” In this paper, Arnerich Massena describes the firm’s philosophy on how best to put this advice into practice.

The paper contributors, which include co-CEO and co-CIO Bryan Shipley, CFA, CAIA; Arthur Coyne, CFA; James Ellis, CFA; Chris Van Dyke, CFA, CAIA; and Luka Arnerich, CAIA, note that turning Señor Panza’s advice into practical reality requires detailed decisions about what qualifies as a basket and how many baskets to use – focusing on the importance of using well-differentiated asset classes when structuring a portfolio. “Finding genuinely uncorrelated assets is not as straightforward as simply combining a few stock and bond asset classes,” lead contributor and senior research analyst Arthur Coyne, CFA, says. “To achieve long-term portfolio risk management, the asset classes should ideally perform independently of each other, so they don’t all fail at the same time. Unfortunately, history shows that in practice, this is easier said than done, since many seemingly different types of investments have historically tended to deliver surprisingly similar performance results.”

Arnerich Massena co-chief investment officer and paper contributor Bryan Shipley, CFA, CAIA, explains that “Arnerich Massena’s asset allocation solution involves a more streamlined list of broadly defined asset classes that are more meaningfully differentiated and capable of providing better diversification.” The full paper details the “baskets” the firm uses and discusses the advantages of this approach.
The paper is available for reading or downloading at http://arnerichmassena.com/blog/wp-content/uploads/2020/08/Quest-for-diversification_Aug-2020.pdf.

About Arnerich Massena
Founded in 1991, Arnerich Massena is a Portland-based independent investment advisory firm servicing endowments, foundations, charitable organizations, private clients, trust and estates, and corporate retirement plans. The firm provides traditional portfolio management and investing, as well as multi-family office services, for clients, and is also widely known for successfully investing in high-impact areas like water resources, sustainable agriculture, fisheries, healthcare, and clean energy technology. Arnerich Massena strives to be a business that exemplifies both corporate citizenship and professional service, and has received awards for its innovations in corporate philanthropy.  More information is available at www.arnerichmassena.com.