In Chapter 16, structural risk was defined as : "There may also be some structural risk associated with any mismatch between the aggregate of the portfolio benchmarks and the total fund benchmark." For some reason, I am not able to wrap my head around the structural risks involved in active investment management. What do they mean by "aggregate of the portfolio benchmarks" and "total fund benchmark"?
Hi Here are couple of earlier forum posts about structural risk. Let me know if these don't clear the issue for you. https://www.acted.co.uk/forums/index.php?threads/risk-budgeting.13788/#post-51413 https://www.acted.co.uk/forums/index.php?posts/50537/ Regards Steve
