BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.
What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:
A decentralized professional investment process can lead to inefficient portfolios. Low-risk equities are undervalued because active managers have a dual incentive to buy high-risk stocks.
First, in order to increase the chance of expected outperformance; and second, to maximize investments under management. Empirical research shows that low-risk stocks have a superior Sharpe ratio. The low-risk effect is not attractive to long-short managers or information-ratio-driven asset managers. The best way to benefit from this effect is by implementing a strategic allocation to low-risk stocks. In this respect it is important to apply a long-term evaluation horizon.