When markets are calm, benchmarks like the S&P 500 can feel like a reliable guide. They show us how equities perform, where the opportunities are, and how portfolios compare against a widely recognized standard. But benchmarks are only part of the story. They measure performance—they don’t manage risk.
For financial advisors, that gap matters. Clients aren’t just asking for returns; they’re asking for confidence. They want to know their portfolios can weather volatility without forcing them into rash, emotional decisions. That’s where a risk-managed approach comes in.
The Benchmark’s Blind Spot
The S&P 500 remains a useful benchmark, but its market-cap-weighted structure isn’t designed with risk in mind. When markets tumble, the index offers no buffer. Investors are left to ride the storm and hope for recovery.
For many clients, that’s easier said than done. Large drawdowns often lead to panic selling, which can do more damage than the downturn itself. Advisors know the challenge: keeping clients invested for the long term, even when headlines scream volatility.
The Anchor Approach
The Anchor Risk Managed Equity Fund was built for this exact moment. Rather than simply tracking the market, it takes a dynamic, risk-first approach. The goal isn’t to outperform the S&P 500 every year—it’s to create a smoother ride that helps clients stay invested.
Here’s how:
- Risk-adjusted returns: The fund prioritizes efficiency of returns, not just absolute numbers. By actively managing downside risk, it aims to improve the overall return-to-risk ratio—helping clients achieve more consistent progress toward their goals.
- Dynamic volatility management: Unlike static index funds, the strategy adapts in real time. When volatility spikes, exposure is reduced to limit losses. When markets calm, exposure increases to capture upside. That flexibility helps minimize the whiplash effect of extreme drawdowns.
- Capital preservation: The fund is intentionally designed to protect principal during turbulent markets. Over full market cycles, avoiding deep losses can create a stronger path to long-term growth than chasing peaks during bull runs.
Proof in the Numbers
Theory is one thing, but advisors need evidence. Over the past several years, market stress has provided plenty of real-world tests—and the Anchor Risk Managed Equity Fund has shown resilience each time.
- 2020 – COVID-19 shock
While the S&P 500 fell more than -33% at its peak drawdown, the Fund limited losses to -7.9%. Its standard deviation remained less than one-third of the index’s, demonstrating stability amid crisis.
- 2022 – Bear market
In a year where stock-bond correlations broke down and volatility spiked, the Fund’s maximum drawdown was roughly one-third of the S&P’s. It also delivered significantly lower volatility, helping advisors reassure nervous clients.
- 2025 – Geopolitical turbulence
As markets reacted to shifting policy and global uncertainty, the Fund once again reduced exposure. The result? A drawdown of just -1.4% compared to the S&P’s -14.7%.
Across these stress periods, the Fund demonstrated the same discipline: reduce exposure when risks climb, re-engage when conditions stabilize, and always keep capital preservation front and center.
Why It Matters for Advisors
Helping clients “stay the course” is one of the hardest parts of advising. When portfolios swing wildly, even the most disciplined investor can waver. A strategy that reduces drawdowns and smooths volatility doesn’t just protect returns—it protects relationships.
By integrating a risk-managed equity core into portfolios, advisors can:
- Build client confidence in turbulent markets
- Reduce the likelihood of panic-driven selling
- Improve long-term outcomes through steadier compounding
It’s not about replacing benchmarks like the S&P 500. It’s about going beyond them—adding a layer of discipline that helps clients achieve their goals without being derailed by volatility.
Markets will always be unpredictable. Advisors can’t eliminate risk, but they can manage it. With the Anchor Risk Managed Equity Fund, the focus shifts from chasing performance to delivering consistency, resilience, and peace of mind.
If you’re ready to help clients navigate the next wave of volatility—and the one after that—now is the time to think beyond the benchmark.
