For these reasons, the outlook for low
volatility strategies remains promising.
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.
With corporations eliminating more than 84,000 pension plans since 1985, over a decade of unprecedented and ongoing market
volatility, a Social Security system that has over 2,000 filing rules and a government agency prohibited from dispensing advice, the ability to offer expertise on the topic of when and how to develop a Social Security filing
strategy is paramount to helping retirees
remain financially viable throughout retirement.
While this
strategy was a modest detractor in the quarter given the strong rally in stock prices, we believe it
remains a key aspect of the fund's lower -
volatility mandate.
But when
volatility is low and the market grinds upward, it is difficult to beat a
strategy that
remains fully invested and minimizes trading costs.
That said, the other concerns regarding
volatility plays
remain true for short
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.
«Equity risk
remains the dominant risk factor within an investor's asset allocation, driving both corporate and public pension plans to continue their focus on reducing funding
volatility by adjusting their asset allocation into
strategies that are traditionally uncorrelated to equity corrections and drawdowns,» says Chris Adair, Senior Managing Director, Ryan Labs.