Or have minimum
volatility funds fallen off like the majority of Wall Street fads?
Not exact matches
LONDON, April 20 - British emerging markets - focused hedge
fund Onslow Capital Management has closed after a long period of low
volatility hit returns and assets
fell below a sustainable level, it said in a letter to investors.
Former employees say that in the
fall, O'Brien, as chief investment officer, opted to hedge most of the
funds to shield them from further
volatility.
Volatility's impact on a money
fund's net asset value (NAV) from an increase in yield
falls well short of what would be necessary to challenge the stability of principal.
Increased
volatility means the value of your
fund holdings could rise or
fall dramatically at any time.
For example, bond
funds, like the iShares Universe Bond Index ETF (TSX: XBB), are believed to have lower
volatility ratings than stock
funds, yet bond prices have recently
fallen as yields have risen.
Although bonds» values rise and
fall like stocks and mutual
funds, they have a reputation for being «safe» investments because they experience less market
volatility.
He found that market
volatility,
falling gilt yields and historically low interest rates are focusing minds on
funding deficits, de-risking strategies and liability management in the area of defined benefits pensions.