Risk premia strategies can improve plan level diversification, generate returns and offer lower fees.
Founded on the philosophy that investors are compensated for bearing risks, our Liquid Alternatives approach seeks to generate risk-adjusted returns by investing in a diversified portfolio of risk premia. Over a long horizon, investors’ ability to identify and harvest a diverse set of risk premia can enhance performance outcomes and improve portfolio diversification. This approach offers a liquid, transparent, alternative strategy — a complement to existing alternatives (such as hedge funds).
Many “diversified” portfolios have risk exposure concentrated in 1 or 2 risk factors. Learn how low-correlated risk premia may reduce risk and enhance returns.July 2017