“The ‘new normal’ in asset allocation must be forward-looking and driven by macroeconomics, said Sébastien Page, Global Head of Client Analytics, Executive Vice-President at PIMCO.  He was addressing a CFA Society Toronto  luncheon on October 15, 2012 in Toronto’s historic National Club. Traditionally, asset allocation focussed on diversifying according to asset class.  In the ‘new normal,’ Page recommends diversifying across risk factors.  “Think of asset class as simply a container of risk factors,” he suggested.  He gave another metaphor in line with the luncheon crowd.  “Think of risk factors as components like proteins, carbohydrates, and fats.  An asset class would […]