Volatility Management and Control
Management of volatility is fundamental to the service we provide, given the close alignment between the models, risk analysis and capacity for loss. Each model is constructed with a three to five-year investment horizon and targets a specified risk budget.
We invest in open ended funds to allow efficient re-balancing to model positions, and will use both tracker and active funds, utilising their respective advantages.
There is a spread across a range of asset classes and funds to appropriately diversify risk, but not to the extent that the potential for performance is diluted.