Institutional investors

Volatility-responsive asset allocation A stronger link between asset allocation policy and the market environment August 2011 Bob Collie, FIA Chief Research Strategist, Americas Institutional Mike Sylvanus Senior Investment Strategist, Strategy Review and Consulting Michael Thomas, CFA Head of Consulting and Chief Investment Officer, Americas Institutional Market volatility is itself volatile; markets can be relatively stable at some points in time and explosively volatile at others. This means that the risk associated with a traditional (fixed-weight) strategic asset allocation policy can be highly variable over time. This paper explores the possibility of volatility-responsive asset allocation—a dynamic asset allocation policy that varies as market volatility changes. Learn why we believe a volatility-responsive asset allocation policy can lead to a more consistent outcome and a better trade-off between risk and return. Download Research For more information about our research, please contact David or Gerry:     West Coast David Rothenberg Managing Director 866-926-5934 East Coast Gerry Lillis Director 866-459-4128 Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. Date of first use: August 2011 USI-10726			Printer friendly version of this page