When portfolios don’t deliver outcomes as expected the number one question is “Why?”


Anytime someone invests, they do so with a specific outcome in mind. But as the saying goes, the best laid plans often go awry. We examined 280 institutional equity portfolios, representing more than $250 billion in assets, and what we found may surprise you. 

The 280 analyses at the heart of “The Risk Report” were conducted by identifying compensated and uncompensated risks in portfolios to inform adjustments needed, consistent with our core philosophy: investors should be compensated for the risks they take — in all market environments and any investment strategy.

Initially published in 2020, the Risk Report surfaced six common drivers of unexpected results. Two years later the additional analysis of $50 billion of assets demonstrates institutional investors faced similar or even exacerbated challenges, from a portfolio’s exposure to uncompensated risks to the performance-hindering “cancellation effect”.

Download the report today to explore all of the 6 common drivers in depth.

Northern Trust Asset Management
Northern Trust Asset Management

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently realize their long-term objectives.
Entrusted with $1.1 trillion in assets under management as of June 30, 2023, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management in an effort to craft innovative and efficient solutions that seek to deliver targeted investment outcomes.
As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.

Chris Doell, CFA, CIA
Director—Insurance Practice

Andrew Coupe
Director—Insurance Solutions

50 S LaSalle St
Chicago, IL 60603

View the contributor page

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