Our Insights

November 23, 2022
Featured Insight

The Little Things Matter

Risk management is a key element of active portfolio management. Generating outperformance in down markets (via reducing risk) versus generating the same outperformance in up markets (via increasing risk) can have a materially different journey for the end investor. A portfolio which generates alpha by reducing risk will generally exhibit lower volatility and be exposed to less sequencing risk than the alternative. In this month’s Market Insight, we demonstrate quantitatively the impact of this on a hypothetical household using our in-house retirement income model.

The Little Things Matter
November 23, 2022

Risk management is a key element of active portfolio management. Generating outperformance in down markets (via reducing risk) versus generating the same outperformance in up markets (via increasing risk) can have a materially different journey for the end investor. A portfolio which generates alpha by reducing risk will generally exhibit lower volatility and be exposed to less sequencing risk than the alternative. In this month’s Market Insight, we demonstrate quantitatively the impact of this on a hypothetical household using our in-house retirement income model.

The Little Things Matter
November 23, 2022

Risk management is a key element of active portfolio management. Generating outperformance in down markets (via reducing risk) versus generating the same outperformance in up markets (via increasing risk) can have a materially different journey for the end investor. A portfolio which generates alpha by reducing risk will generally exhibit lower volatility and be exposed to less sequencing risk than the alternative. In this month’s Market Insight, we demonstrate quantitatively the impact of this on a hypothetical household using our in-house retirement income model.