The Need for Investment Solutions

Investment management is justified as an industry only to the extent that it can demonstrate a capacity to add value through the design of dedicated and meaningful investor-centric investment solutions, as opposed to one-size-fits-all manager-centric investment products. After several decades of relative inertia, the much needed move towards investment solutions has been greatly facilitated by a true industrial revolution triggered by profound paradigm changes in terms of mass production (of cost- and risk-efficient smart factor indices), mass customisation (of liability-driven investing and goal-based investing strategies) and mass distribution (with robo-advisor technologies). In parallel, the investment industry is strongly impacted by two other major external revolutions, namely the digital revolution and the environmental revolution.

In this fast-moving environment, EDHEC-Risk Institute positions itself as the leading academic think-tank in the area of investment solutions, which gives true significance and virtue to the investment management practice. Through our multi-faceted programme of research, outreach, education and industry partnership initiatives, our ambition is to support industry players (both asset owners and asset managers) in their efforts to transition towards a novel, welfare-improving, investment management paradigm.

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  • january 2018

    1jan - 316:00 pmjan 31- 7:00 pmWEBINAR - SMART FACTOR INVESTING AND EFFICIENT HARVESTING OF RISK PREMIA IN EQUITY MARKETS6:00 pm - 7:00 pm (31) CET Live Streaming, from EDHEC campus, ParisEvent Organized By: EDHEC-Risk Institute

    february 2018

    5feb - 7feb 59:00 amfeb 7Yale SOM-EDHEC-Risk Harvesting Risk Premia in Alternative Asset Classes and Investment Strategies Seminar (3 days)9:00 am - 5:00 pm (7) ET Yale School of Management, 165 Whitney Avenue New Haven, CT 06511-3729Event Organized By: EDHEC-Risk Institute in partnership with Yale School of Management

    14feb9:00 am- 5:00 pmAdvances in asset allocation seminarBlended-learning programme9:00 am - 5:00 pm GMT EDHEC Risk Institute - Europe, 10 Fleet Place Ludgate London EC4M 7RB United KingdomEvent Organized By: EDHEC-Risk Institute

    march 2018

    12mar - 13mar 129:00 ammar 13Four-University Rotating FinTech Conference: KAIST University9:00 am - 6:30 pm (13) KAIST University, Seoul, South-KoreaEvent Organized By: KAIST University


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Risk Management as the Key Source of Added Value in Investment Management

Investment management in the new era can be defined as the art and science of efficiently spending institutional or individual investors’ dollar and risk budgets to help them achieve their meaningful wealth-/income-/consumption- or liability-driven objectives, subject to regulatory constraints. Addressing this challenge involves institutional and individual asset owners (or their investment managers) efficiently using a holistic risk management framework known as liability-driven investing or goal-driven investing. Whatever the context, meaningful investment solutions are based on three fundamental sources of added value: (1) the use of an efficient risky performance-seeking portfolio (PSP); (2) the use of an efficient safe liability-hedging or goal-hedging portfolio; and (3) the use of an efficient allocation strategy for efficient risky and safe building block portfolios.


  • Diversification

    The risky portfolio should be efficient at harvesting risk premia across and within asset classes: It’s all about diversification!

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  • Hedging

    The safe portfolio should be efficient at matching risk factor exposures on the asset and liability sides: It’s all about hedging!

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  • Insurance

    The allocation to the efficient risky and safe portfolios should secure investors’ essential goals while generating a high probability of achieving their aspirational goals: It’s all about insurance!
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  • EDHEC Bond Risk Premium Monitor
  • Perspectives on Retirement Investing
  • Hedge Funds vs Alternative Betas
  • Bayesian Nets for Stress Testing
  • From Investment Products to Investment Solutions
  • EDHEC-PRINCETON Goal-Based Investing Indices



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