Style
drift happens when an active manager drifts from a
specific style, asset class, or index that is described
as the investment purpose of a portfolio or mutual
fund.
For example, a manager may drift
from small cap value to small cap growth. This is
a substantial problem if you have carefully determined
your Risk Capacity™ and matched it to a Risk
Exposure.
Program Overview
Investment professionals and academics
use many terms to define risk. These include markets,
benchmarks, asset classes, styles, style boxes, investment
objectives, risk factors, market dimensions, market
segments, buckets of stocks, rules of ownership,
slices of the market, industry classifications, and
indexes such as Dow Jones Indexes, Standard and Poor's
Indexes, Russell Indexes, Wilshire Indexes, Morgan
Stanley Capital Indexes, Wired Index, and many more.
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