Investors looking to consistently outperform in this new volatility paradigm will have to re-think the balance needed between downside protection and upside participation. Historically, low volatility equities have outperformed the broad market because of their ability to limit large losses while maintaining enough up market participation to produce a high up/down capture ratio. That ratio continues to improve over time as the market continues its increasingly erratic movements.
Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently realize their long- term objectives.
Entrusted with more than $1.3 trillion in assets*, we understand that investing ultimately serves a greater purpose. We believe investors should be compensated for the risks they take — in all market environments and any investment strategy.
*Assets under management as of December 31, 2021
For Asia-Pacific markets, this information is directed to institutional, professional and wholesale clients or investors only and should not be relied upon by retail clients or investors. The information contained herein is intended for use with current or prospective clients of Northern Trust Investments, Inc. The information is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. Northern Trust and its affiliates may have positions in and may effect transactions in the markets, contracts and related investments different than described in this information. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Opinions and forecasts discussed are those of the author, do not necessarily reflect the views of Northern Trust and are subject to change without notice.
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