In this paper we consider how manager research and asset allocation can better connect.  Most investment firms have distinct teams, systems and analytical approaches for conducting manager research and asset allocation. This separation can add risk and lead to sub-optimal portfolio decisions. 

For example, manager selection may unintentionally amplify or dampen risk in a portfolio if it is not assessed through an identical risk lens to that used for asset allocation. Similarly, strategic asset allocation decisions may give insufficient attention to factors that are typically left in the hands of manager researchers. Below we discuss how applying a common risk factor framework can ensure better alignment.

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About Jacobi:
Jacobi's technology has its roots in institutional investment management and brings together investment expertise and a market-leading technology platform. Headquartered in San Francisco with offices in London, UK, and Brisbane, Australia, the company is led by a team of experienced investment professionals and engineers.