The Need for Investment Solutions

Investment management is justified as an industry only to the extent that it can demonstrate a capacity to add value through the design of dedicated and meaningful investor-centric investment solutions, as opposed to one-size-fits-all manager-centric investment products. After several decades of relative inertia, the much needed move towards investment solutions has been greatly facilitated by a true industrial revolution triggered by profound paradigm changes in terms of (1) mass production of cost- and risk-efficient smart factor indices; (2) mass customisation of liability-driven investing and goal-based investing strategies; and (3) mass distribution, with robo-advisor technologies. In parallel, the investment industry is strongly impacted by two other major external revolutions, namely the digital revolution and the environmental revolution.

In this fast-moving environment, EDHEC-Risk Institute positions itself as the leading academic think-tank in the area of investment solutions, which gives true significance to the investment management practice. Through our multi-faceted programme of research, outreach, education and industry partnership initiatives, our ambition is to support industry players, both asset owners and asset managers, in their efforts to transition towards a novel, welfare-improving, investment management paradigm.

Flexicure Retirement Solutions
EDHEC-Princeton Goal-Based Investing Indices
Retirement Income
May 2020 Returns (%)
Zone, Retirement year
Not adjusted
US, 2023
US, 2028
US, 2033
US, 2038
Covid-19 and Smart Beta
Advances in Asset Allocation Online Course
The EDHEC European ETF, Smart Beta and Factor Investing Survey 2020


Risk Management as the Key Source of Added Value in Investment Management

Investment management in the new era can be defined as the art and science of efficiently spending institutional or individual investors’ dollar and risk budgets to help them achieve their meaningful goal-driven objectives (for individuals) or liability-driven objectives (for institutions), subject to a number of regulatory constraints or otherwise. Whatever the context, meaningful investment solutions are in fact invariably based on three fundamental sources of added value, each reflecting one particular form of risk management technique : (1) the use of an efficient risky performance-seeking portfolio (PSP); (2) the use of an efficient safe liability-hedging or goal-hedging portfolio; and (3) the use of an efficient allocation strategy for efficient risky and safe building block portfolios.



The risky portfolio should be efficient at harvesting risk premia across and within asset classes: It’s all about diversification!

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The safe portfolio should be efficient at matching risk factor exposures on the asset and liability sides: It’s all about hedging!

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The allocation to the efficient risky and safe portfolios should secure investors’ essential goals while generating a high probability of achieving their aspirational goals: It’s all about insurance!

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Academic Roots

EDHEC Bond Risk Premium
Bayesian Nets for Stress Testing

EDHEC Risk Expertise

ESG Factors and Sustainable Investment Solutionst
"Flexicure" Retirement Solutions - A part of the Answer to the Pension Crisis?

Practitioner Reach

Ostrum Bond Portfolio Optimization
Results of the 12th EDHEC European ETF Smart Beta Survey


A great success for the Climate Change, Credit Risk and Covi 19 Workshop

A great success for the Climate Change, Credit Risk and Covi 19 Workshop

A great success for the online workshop organised by the "Long-Term Investors Lab” of the University of Turin and EDHEC-Risk Institute, with almost 400 people registered to learn from top experts on fixed-income implications of climate change and covid.   The Covid-19 emergency seems to have increased attention towards long-term issues like sustainable investments and development...
60,000 people already enrolled in the Investment Management with Python and Machine Learning Specialisation

60,000 people already enrolled in the...

Investment Management with Python and Machine Learning Specialisation   This programme has been designed by Professor Lionel Martellini, Director of EDHEC-Risk Institute, along with an...
Gianfranco Gianfrate speaking on climate change and credit risk on 27 October

Gianfranco Gianfrate speaking on...

On 27 October 2020, Gianfranco Gianfrate, Professor of Finance, EDHEC Business School and Lead Expert on Sustainable Finance and Climate Change, EDHEC-Risk Institute will be speaking on the theme of...


08 Dec

Journée Nationale des Investisseurs

Digital Conference


09 Dec

Green Finance Research Advances

Online conference


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55 000
Citations in worldwide trade publications
Papers published
2 500
Participants trained
100 000
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