Almost 26 years ago, Professor Harry Markowitz was awarded the Nobel Prize for his pioneering work in financial economics. Markowitz developed a model for understanding portfolio allocation under uncertainty, which has endured as Modern Portfolio Theory. Clearly this is not quite so modern today but it has withstood the test of time. By urging investors not to focus solely on returns of individual stocks but to also consider the concept of risk exposure, Markowitz changed the way people invest. Today, trillions of pounds are invested, including our own client’s funds, according to his principles of risk and return.