ESMA vs LASSO BIC Forecasting
Key Takeaways for Investment Funds Investment funds must publish scenario analyses in their Key Information Documents (KIDs) under ESMA regulations. ESMA’s historical simulation model is the current standard, but is it the best forecasting method? Our analysis compared ESMA’s historical return approach to LASSO BIC forecasting, a more data-driven methodology. Here’s what fund managers need […]
