Risk and Return Estimation
Once asset classes have been selected, finding an efficient frontier still requires information: the expected returns for each asset class, the expected risk of each asset class, and the expected correlations between different asset classes. Finding these numbers from historic returns is not difficult, but there is a reason why prospectuses always remind investors that investment performance is no guarantee of future results.
New Frontier enhances the investment value of historically estimated information by incorporating modern financial theory, insights into contemporary markets, and socio-political factors in the estimation process by means of advanced statistics. The fact that our estimates optimally reflect investment theory and current market conditions without directional forecasts separates them from academic approaches to strategic asset allocation that only use historical data.