PT  - JOURNAL ARTICLE
AU  - Daniel Ziggel
AU  - Christian Armbruester
ED  - Saklatvala, Kathryn
TI  - Practical Applications of Constructing a Passive Global Stock Market Portfolio from a Multigenerational Family Office Perspective
AID  - 10.3905/pa.2016.4.3.204
DP  - 2017 Jan 31
TA  - Practical Applications
PG  - 1--4
VI  - 4
IP  - 3
4099  - https://pm-research.com/content/4/3/1.6.short
4100  - https://pm-research.com/content/4/3/1.6.full
AB  - Constructing a Passive Global Stock Market Portfolio from a Multigenerational Family Office Perspective Daniel Ziggel Christian Armbruester It’s not unusual these days to scoff at active management, but Christian Armbruester made an even bolder departure when he took over management of his family’s assets at Blu Family Office , rejecting all predictive analytics.Using a single core belief, the inevitability of worldwide growth over the long term, he and Daniel Ziggel, a Professor at FOM Hochschule für Oekonomie & Management , set out to “buy the world,” using passive ETFs.Using GDP weighting as a starting point, they then developed a set of indicators for relative attractiveness of different countries. The hardest part was agreeing on how to diversify across sizes and sectors. “Why would it be better to invest in energy or health care?” the authors asked, for example.The portfolio construction was mercifully free from short-term performance pressures. “At no time was the intention to try to outperform the market. We never even did a backtest until after we had finalized our approach,” notes Ziggel.