The Missing Piece in Your Portfolios
Why You Need Risk Management

The Missing Piece in Your Portfolios
Why You Need Risk Management

The largest institutions have been using risk managed products for decades to reduce risk, add diversification, and improve risk-adjusted returns to help ensure they meet their payout obligations. Meanwhile, retail investors have had limited access to risk managed products—or have been left out entirely.

The risk management gap: the biggest difference between institutions and retail investors.

Like institutions, Advisors are overwhelmingly adding risk management to their client portfolios.

In a recent survey from Allianz Life, nearly 90% of financial advisors say that it’s more important to manage risk in their clients’ portfolio than it is to have the highest returns.1

Anchor Capital’s risk managed products can help fill that gap.

Source: 1 Allianz Life, RIA Retirement Risk Review Study, May 2021
Source: KKR & Co. Inc. (KKR) stock discussion in Yahoo Finance’s forum. Accessed June 2021.

Adding more diversification doesn’t reduce risk. Adding the right kind of diversification does.

For decades, advisors have been making portfolios more and more complex—adding new products and diversifying across more asset classes in hopes of improving returns and reducing risk. The exact opposite has happened: portfolios have become riskier, without offering the compensation of higher returns2.


Increasing Complexity

In 1991, simpler portfolios achieved a nearly 1-to-1 return for their level of risk. Today’s complex portfolios have more than 3.5 times the risk for the same 5% return.

Complex Portfolios

Anchor Capital believes that if you get the risk right, you’ll get the returns right.

For more than 20 years, we’ve focused exclusively on our proprietary, research-based approach to modern risk management. We offer risk managed mutual funds to complement the 4 major asset classes, allowing them to fit within the current allocation of almost every portfolio.

They are designed to capitalize on opportunities across market cycles by providing:

  • Strong correlation to the markets during periods of growth
  • Reduced or even inverse correlation during periods of rising volatility or market stress

By offering strategies that institutions have used for decades, Anchor Capital can help advisors simplify portfolios, reduce volatility, and achieve more sustainable returns over time.

Source: 2Callan, “Risky Business Update: Investors Face Additional Challenges amid Increased Uncertainty,” January 27, 2021

Right Risk, Right Return

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