The multi-asset, multi-manager approach to investing is fundamentally about diversification to control risk including volatility, but also the risk that’s most important to clients which is the risk of not meeting the end objective. When diversifying across managers, if you believe in active management, measuring factor exposures matters. It’s important when constructing portfolios is that we measure and control market beta - including factor betas - and non-market risk, or alpha risk, to ensure these two key risks are within agreed constraints, and that the portfoli...