The global investment landscape has shifted over the past 10 years in four key ways, says Sebastien Page, executive vice-president and head of the client analytics group for Pimco.

The four drivers he lists are:

  1. A shift from focusing on data and models to macroeconomic forecasting.
  2. A switch from diversifying across asset classes to diversifying across risk factors.
  3. A realization that focusing on static time horizons—allocating assets and then not making changes for many years—doesn’t work, since markets change in unexpected ways.
  4. A shift from measuring risk as volatility to measuring it as exposure to large losses.

Watch the video to find out what Page had to say about these four key drivers of change.