Since the rider benefit base does not decrease as a result of investment losses,
volatility control strategies might not provide meaningful additional benefit to you.
If you determine that funds with
volatility control strategies are not consistent with your investment objectives, there continues to be other designated investment options available under the Retirement Income Max Riders that do not invest in funds that use
volatility control strategies.
Not exact matches
Yet, more than $ 2 trillion remains in the hands of financial - engineering
strategies pegged to low
volatility, including
volatility -
control funds, risk parity, risk premia, and long - equity - trend following.
A US equity market neutral and global systematic macro trading
strategy that aims to deliver uncorrelated alpha with
controlled volatility across a wide range of market environments.
Portfolios are designed to consistently reflect an investor's risk requirements in all markets and to outperform their benchmarks by protecting capital in two ways: first, under normal market conditions, with
volatility within historical averages, diversification is used to
control risk; second, when
volatility is historically high or low, PŮR uses a proprietary SmartRisk ™
strategy.
Other indexed accounts calculate interest based on a high water mark, a monthly cap,
volatility control, multiple indexing
strategies, uncapped
strategies, or one of several others available.
If you focus on what you can
control these portfolio risk
control strategies can greatly decrease the
volatility of your portfolio.
Ultimately, investors need to look at
strategies that stabilize portfolio
volatility (so - called «managed
volatility»
strategies) and
control exposure to loss — those who fail to do that expose themselves to tail risk.
Recently, institutional investors with long - term investment horizons have responded with aversion to market
volatility by considering a number of risk
control strategies.
Yet, more than $ 2 trillion remains in the hands of financial - engineering
strategies pegged to low
volatility, including
volatility -
control funds, risk parity, risk premia, and long - equity - trend following.
Therefore, a risk -
control strategy based on realized historical
volatility is likely to add value over the long run as well; even though we do not forecast
volatility.
Volatility has a large negative effect on portfolio performance; therefore it's important to implement portfolio risk
control strategies.