In Search of Diversification
Diversification has become harder to achieve in an inflationary environment where equities and bonds have become positively correlated. But liquid alternative strategies, such as trend following, macro and market neutral equity, can provide some relief, CFM says
Active Risk Levels Slashed
Super funds have slashed their active risk budgets in response to the YFYS performance test and the challenging market environment. This means funds have to be smarter about their remaining budget and avoid uncompensated risks, Northern Trust Asset Management says.
Evolving Liquid Alternatives
Not all systematic strategies are created equal. LGT Capital Partners’ Antonio Ferrer discusses how to adjust these instruments to help protect against equity drawdowns over the long term, while also establishing a framework to ensure investors don’t miss out on opportunities in times of stress.