Clients matter... EDHEC-Risk Institute believes that client servicing and the provision of investor solutions should respect a number of guiding principles: financial engineering should address client needs rather than showcase technical sophistication; the role of financial models should be to ensure that clients' genuine risk preferences are respected; and investors' objectives and liabilities should command equal respect whatever the clientele - institutional, private, or retail. Some have wondered for example whether the failure of standard portfolio diversification techniques in recent years could be explained by their inability to account for extreme market moves. More...