Defined Duration Frontier

How This Tool Works:This tool presents the time horizon over which different assets expose your portfolio to sequence of returns risk (portfolio drawdowns when you might need liquidity). We quantify the "Defined Duration" (the expected time horizon over which an asset has potential sequence risk) and the Portfolio Builder maps out your weighted defined duration and sequence risk score. A sequence score of 1 reflects low risk and a sequence score of 3+ reflects higher risk. To reduce sequence risk in an asset-liability matching strategy you will want to optimize for liquidity optionality which is reflected in the corresponding table.