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Portfolio Construction for Today’s Markets

A practitioner's guide to the essentials of asset allocation

By Russ Koesterich

Hardback £30.00 / $40.00
eBook £20.00 / $25.00
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Portfolio Construction for Today’s Markets

A practitioner's guide to the essentials of asset allocation

By Russ Koesterich

Jacket text

For most of the past 50 years the simplest asset allocation solution was often the best. A balanced portfolio of stocks and bonds provided the investor with good returns. Unfortunately, this approach is not likely to work as well in the future. Interest rates are close to historic lows, equity valuations and bond prices appear stretched, and global economic growth has slowed. Investors need a new asset allocation solution.

In Portfolio Construction for Today’s Markets, BlackRock Portfolio Manager and investment expert Russ Koesterich addresses this problem by describing the step-by-step approach to building a portfolio consistent with investor goals and suited to today’s market environment.

This portfolio construction process is divided into six stages, beginning with setting objectives and moving through assessing risk tolerance, diversification, the importance of factors, generating return assumptions, and combining assets in a risk-controlled manner. In the final chapter, Mr Koesterich presents a highly useful summary of the five fundamental rules of asset allocation and a five-step checklist to follow when constructing portfolios.

For investors and their advisors constructing portfolio in today’s markets, this book is an indispensable new guide.

About the author

Mr Koesterich is a financial services veteran with 22 years' experience in the industry. Since 2005 he has worked at Barclays Global Investors and BlackRock, the world's largest asset manager, with over $4.5 trillion in assets.

Mr Koesterich is currently a Portfolio Manager of the BlackRock Global Allocation Funds. In that capacity Mr Koesterich is responsible for driving asset allocation and risk management for BlackRock's largest investment team, managing approximately $80 billion. Prior to his current role Mr Koesterich served as the Global Chief Investment Strategist for BlackRock as well as the Chief Investment Strategist for the iShares business, the world's largest provider of exchange traded funds (ETFs). Prior to joining BlackRock (then BGI) in 2005, Mr Koesterich was the Chief North American Strategist for State Street Global Markets in Boston.

Mr Koesterich is a frequent contributor to the financial news, including CNBC, Bloomberg, and Fox Business television, the Wall Street Journal, Financial Times and Market Watch. He is the author of two previous books.

Mr Koesterich holds a BA from Brandeis University, a JD from Boston College Law School and an MBA from Columbia Business School. He is also a Chartered Financial Analyst (CFA).


In his usual clear and engaging style, Russ Koesterich presents the institutional approach to asset allocation. Investors need to know how portfolio construction impacts return, risk, and financial well-being, and Portfolio Construction for Today’s Markets provides the way.

Ron Kahn, Global Head of Systematic Equity Research, BlackRock, and co-author of Active Portfolio Management

At a time when investment advisors are faced with an increasingly complex options to fulfill their roles as fiduciaries, Mr Koesterich provides a comprehensive yet accessible guide to the art of asset allocation.

Jason De Sena Trennert, Chairman, Strategas Research Partners

Russ Koesterich does an excellent job of explaining the unique challenges that investors face in the current environment, namely balancing risk and reward in a low interest rate world. His structured approach to investment decisions is an extremely useful framework.

Jonathan Golub, CFA, Chief US Equity Strategist, Credit Suisse Securities USA LLC

Media coverage

From Blue Rating:

Moreover, as pointed out by Russ Koesterich in “Portfolio Construction for Today’s Markets”, published by Harriman House, there are other characteristics of consumers, above all the age, that can modify the composition and quantity of aggregate demand, tendentially less stable than the offer function.

Read More…

From MoneyLife Radio:

“Asset allocation is ultimately what drives investment results… It’s really not about which horse you are picking, it’s how you decide which races you’re going to run… and that’s what the book focuses on.”

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From Seeking Alpha:

Koesterich considers several approaches to constructing a workable portfolio, in increasing degrees of viability: minimum risk, maximum return, maximum Sharpe ratio, targeted return while minimizing risk, and maximum return within a particular risk budget.

Read More…

Published: 27/04/2018
Edition: 1st
Pages: 248
Formats: hardback - ISBN 9780857196293
ebook - ISBN 9780857196309
Media enquiries

If you’d like to get in touch with the author for interview or comment, or you’d like a review copy of this book, please contact us at or call +44 (0)1730 233870.


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