Understanding the components of investment return

The ability to separately offer the different elements of investment return — beta, strategic beta and alpha — is a growing and important trend.

The concept of unbundling isn't new; many industries are beginning to break apart their packaged offerings. The cable TV industry, for example, is a place where consumers are opting out of the full package — buying internet service and other entertainment elements separately. The ability to offer investment services in the same way is important. Colin Moore discusses the three components that make up investment return.

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