Target-Risk Equity Funds

Target-Risk Equity Funds have significant applications in:

(i) the investment and risk management of DB and DC pension plans;

(ii) reducing the volatility of multi-asset portfolios;

(iii) managing the market risk of equity portfolios; and

(iv) in managing the probability of ruin in approved retirement funds. 



The presentation will explore the creation, management, performance, and applications of target-risk equity funds.



The presentation will also examine why the peak-to-trough falls in the value of equity portfolios which are not managed to a target-risk level are substantially greater than that which might be implied by the annualised standard deviation of monthly, weekly or daily returns on that portfolio and how that phenomenon can give rise to surprises for investors and their advisors.

To access podcast please contact the Society: info@actuaries.ie