With the returns on offer, it can be alluring to tilt towards an equity-heavy portfolio. But with those returns, come higher volatility, and therefore more uncertainty about future outcomes. How can you plan a 30-year retirement if you’re uncertain what returns to expect in the next five years? Never has this issue been more important, as ultra-low rates persist around the world. As investors have searched for yield, this has driven asset prices and risks higher and higher. In this video, Dr Laura Ryan from Ardea Investment Management discusses one strategy that can produce returns regardless of whether interest rates are rising or falling.
Ardea believes that accurate and transparent risk measurement is fundamental to making intelligent investment decisions and producing the anticipated return outcomes. To find out more, visit their website.