Strategy guide: Global risk mitigation
Key features
We actively manage our GRM strategy. We allocate across multiple hedging strategies in an effort to best protect investors at all times.
Liquid
Liquidity is the first line of defense. The ability to monetize gains quickly and to reallocate capital is critical during times of stress. Our GRM strategy offers investors daily liquidity.
Inexpensive
Hedging strategies can be expensive. Our GRM strategy includes uncorrelated strategies with positive expected returns that partially compensate for the costs incurred on hedging premiums. This helps reduce the cost of hedging over the medium to long term.
Convex
By using four different strategy types, our GRM strategy benefits from increased market volatility. It performs at its best when investors need it most.
Transparent
Knowing what’s in your portfolio is important. It means that investors can be sure that they are hedging out the risks specific to their portfolios. Our GRM strategy offers full transparency into the underlying holdings at all times.
Protection
The objective of the GRM is very clear — to protect growth portfolios. The strategy targets a negative beta to stocks at all times. In some hedging strategies, the position may be more dependent on the manager’s views. But our GRM strategy will always aim to move in the opposite direction to equities.
Actively managed
We actively manage our GRM strategy. We allocate across multiple hedging strategies in an effort to best protect investors at all times.