Outcome orientated

Outcome orientated

        outcomes orientated means that they are more interested in the final outcome rather that going through a process. In many ways it is a good thing. That is as long as the desired result is a honorable thing and that the process has honesty. You could say it does not matter how you get there as long as you get there. Not good if it has a harmful effect on other areas.

        Albert Hong, Work in portfolio management at Blackstone

Asset managers are behind the big push towards outcome-oriented investing and the concept is nothing new. This is simply the asset manager community waking up to the understanding that consumers don't think in risk-reward building block terms. The average sell investor does not know squat about the risk-reward profiles of equities versus changeable bonds versus emerging market equities against commodities and has no concept of portfolio optimization so selling them building blocks like "high yield bonds" or "high-dividend equities" is a tiring and inefficient effort.

Instead, what resonates far more with consumers are "outcomes" therefore the name. Think about your net worth. What would you like it to do for you? Here are some common responses:

I want my account to throw off enough cash to pay for my life through retirement.

I don't want to lose more than 5% a year. Ever.

I need my portfolio to make at least 50k a year to meet my obligations.

Here are the responses you never hear:

I'd like to put 20% in high-beta stocks, 10% in emerging market hard currency bonds, and the remainder in long-dated treasuries.

I'd like to target a 1.0 Sharpe ratio.

substantially, outcome-oriented investing is the asset manager taking over the asset allocation role and packaging all the building blocks to achieve the desired outcome, whether it is yield, risk management, capital preservation, etc. It saves the investor a step, cuts out the expensive middleman in some cases (financial advisors) and leaves both sides in a win-win situation the asset manager tends to get a bigger share of the pie since they are pitching an all-in-one solution and enjoy "bundling" effects and higher fees for their services; the client wins by saving themselves the headache of either managing their own portfolio blindly or paying an advisor hefty fees to manage it for them, all while leveraging civilize models, glide paths, whatever it may be, to more consistently achieve their outcome.

comment Everyone in the organization is working to support the organization's goals to accomplish more work to not recognize or ignore the will of the goal or not. And some of it's promotional campaign. Create awareness throughout the organization that runs the agency even has its own class portfolio extravagant but if the organization does not meet the target, it does not mean the price or the organization and its employees as well. The end result is that organizations can send or respond to the customer and the service is profitable growth. The survival of the organization entirely. Therefore, the knowledge and awareness of thoughts, words, and to adjust the work to the entire organization working to support the goals of the organization, so it is most needed.