PROJECT M
 

Investing in a world of financial repression

With government measures and stagnant markets keeping real interest rates below zero, investors need to be bold and creative to reach their return on liability targets

Reinhold Hafner
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Investing in a world of financial repression

With government measures and stagnant markets keeping real interest rates below zero, investors need to be bold and creative to reach their return on liability targets

Reinhold Hafner

Different strategies for dynamic risk management

Strategy 1

Tail-risk hedging (static) with risk management

TYPES

  • Tail-risk hedges
  • Risk management: based on VaR or CVaR

CHARACTERISTICS

  • Asset allocation decisions made by investor Continual risk management

Strategy 2

Dynamic asset allocation

TYPES

  • Dynamic strategy portfolio (DSP)
  • Portfolio insurance plus (PIP)
  • VaR/CVaR management
  • Best of n assets

CHARACTERISTICS

  • Systematic risk and opportunity management
  • Transparent investment procedure, strictly according to rules
  • Flexibly adaptable
  • Better return profile in the long term than Strategy 1

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