Risk and Return
Achieving a higher return may be your objective, but what risks are you willing to take? There is an inseparable relationship between risk and reward. Properly managing that relationship is the key to long-term investment success.
Our management philosophy is built on the foundation of mitigating the numerous risk you face as an investor. The risk management principles incorporated into our investment programs seek to mitigate:
- Manager-specific risk
- Strategy-specific risk
- Market risk
- Company-specific risk
- Sector risk
- Industry risk
- Portfolio
| Investment Risk/Return |
Buy & Hold |
Modern Portfolio Theory | Tactical Management | Dynamic Asset Allocation | Multi-Manager |
| Risk: | |||||
| Manager-specific | Low | Medium | High | High | Low |
| Strategy-specific | Low | Low | High | High | Low |
| Market | High | Medium | Low | Low | Low |
| Company-specific | High | Low | Low | Low | Low |
| Sector | High | Low | Medium | Low | Low |
| Industry | High | Low | Medium | Low | Low |
| Portfolio | High | Medium | High | High | Low |
| Return: | |||||
| Risk Adjusted Return | Low | Low | Medium | Medium | High |
It is only through appropriate risk management, that you can maximize your investment returns.