Managing Investment Risk
Risk is managed in through:
- Diversification of the assets making up a portfolio (see portfolio construction)
- The use of collective investments i.e. funds, rather than individual shares: The diversification that these vehicles provide reduces the client’s exposure to any one company’s underperformance caused by such events as a profits warning, news of corporate mismanagement or fraud.
- The use of iFunds proprietary investment management software. Our managers use this software to measure the current level of risk attached to the different asset classes used in client portfolios
