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Posts Tagged ‘risk’


Why downside protection may matter more than upside growth

Why downside protection may matter more than upside growth

Senior Portfolio Manager of the Multi-Asset Growth Strategy discusses the key concepts behind downside protection. A multi-asset approach to investing can efficiently employ downside protection in order to smooth the path towards securing an investor’s financial objectives.   The power of capital preservation   The global macroeconomics and geopolitical outlook remains uncertain, suggesting that an

July 27, 2017 Categories: Investment Strategy, Multi-asset
Don’t overlook currency management in a multi-asset portfolio

Don’t overlook currency management in a multi-asset portfolio

As the summer holiday season approaches, Van Luu explains why the euro looks attractive for multi-asset portfolios in the long-term.   Don’t overlook currency management in a multi-asset portfolio: Spotlight on the Euro   As the holiday season approaches and people set off to catch some summer sun (Greece, Italy, Spain anyone?) it seems as

Jul 20, 2017 Categories: Currency, Implementation, Investment Strategy
Life in a low return world: every basis point counts

Life in a low-return world: Every basis point counts

Last time I explained the benefits and variable scenarios of currency hedging – both static and dynamic. As we saw, the opportunities available in currencies can often be overlooked within an investor’s core multi-asset strategy. We think there are four strategies that can be employed to manage risks and make the most of the return

Jul 12, 2017 Categories: Currency, Implementation, Investment Strategy

Multi-asset investing – how much risk can you afford?

Investors today face a challenging landscape, with high valuations across many traditional asset classes. Those high valuations come with low prospective returns, below-normal yields and, last but not least, high risk of significant drawdowns. More than ever, investors need to consider how much risk they can afford in pursuit of their investment goals. And more

Multi-asset investing: the importance of protecting the downside.

Multi-asset investing is a hot topic. Increasingly, a wide range of investors want the dynamic allocation and effective diversification attributes that a well-managed multi-asset portfolio can provide. Savvy investors also want to ensure their multi-asset fund uses best-of-breed managers and strategies in every asset class, to generate the extra performance that is so vital in

Brexit background – a strategist’s view

It is natural to prize social co-operation if, like mine, your country lies more than a metre below sea level. By contrast, islanders may have more mixed opinions on the merits of integration with their neighbours. From an investment strategy perspective, however, our view on Brexit is clear – it will likely lead to weaker

To Hedge or Not to Hedge – Blog 4

Liability hedging has always been a difficult investment decision for pension trustees to make. This is the final blog in a series that explains the hedging question as ‘right sizing your risk’. In this final blog around liability hedging we will look at carry and the cost of waiting to hedge. Carry and the cost

To Hedge or Not to Hedge – Blog 3

This blog is one of a series that explores some of the features and drivers of the term structure of interest rates and how they can influence the hedging question. In my last blog we saw that hedging strategies will only underperform if interest rates increase by more than what is currently priced into the

To Hedge or Not to Hedge – Blog 2

Liability hedging has always been the hardest investment decision for pension trustees to make, but right now, with interest rates so low, it seems that all the risks are one-sided. Faced with a low interest rate environment many pension trustees are considering a delay to planned liability hedging. In my first blog we looked at

To Hedge or Not to Hedge

Discussions around liability hedging have never been so topical. Notwithstanding the selloff in real and nominal interest rates seen since January of this year, rates are still at very low levels and many question whether now is the right time to hedge. Apart from the economics there are also behavioural aspects in play, most notably

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