ICR340: Russ Koesterich, Portfolio Construction for Today's Markets

For almost 50 years the simplest investment solution was often the best.

A balanced portfolio of stocks and bonds provided most investors with a comfortable retirement. Unfortunately, this approach is now unlikely to work.

Retirement is longer, private company pensions are a thing of the past and interest rates are at historic lows. Investors need a new plan and a new approach to organising their investments.

My guest on the podcast today is Russ Koesterich, Managing Director and portfolio manager for the Global Allocation team at BlackRock.

Russ is an industry veteran with more than 23 years’ experience in asset allocation and portfolio construction.

In this episode we talk about asset allocation; the art of combining different investments to build a portfolio aligned with your objectives and respectful of your limitations. Asset allocation is so important because it's the driver of investment returns.

In his new book, Portfolio Construction for Today's Markets, Russ addresses the current issues with asset allocation by describing the step-by-step approach to building a portfolio consistent with investor goals and suited to today’s market environment. This is what we cover in the podcast episode today and it's well worth a listen for all investors, especially those investing for retirement.

Here’s my conversation with Russ Koesterich in episode 340 of Informed Choice Radio.