Emotional Assets | Management & Research

An optimised portfolio is defined as one in which the expected level of return is maximised at each level of risk or, alternatively, the risk is minimised at acceptable levels of return.

The following is a summary of our research findings at EAMR.

1. Using data over the last 20 years, an optimised portfolio of assets would allocate 15% to Emotional Assets
2. This portfolio is comprised of the following:

3. This large allocation to Emotional Assets in an optimised portfolio reflects the very high sharpe ratios that these emotional assets have exhibited over the medium and long term
4. Therefore, an optimised portfolio with multiple asset classes – both traditional and alternative – should include an exposure to the Emotional Assets class category.