van Eyk refutes dismissal of volatility investment
van Eyk has reiterated its view that investors can take advantage of market volatility, if done through the prism of volatility options to generate profits while protecting investors.
In a response to recent industry comments that investing in volatile overseas shares cannot reward investors, van Eyk head of ratings Matt Olsen said that investors could utilise strategies to enable them to protect themselves from volatility while still taking advantage of it.
He said that would give investors the best success in profiting from volatility while not suffering from its effects.
"We've found strategies that help investors profit from a higher volatility environment or an environment of risk, such that they can diversify their returns from equities into these other strategies," Olsen said.
Having a component of volatility options in the alternatives part of an investment portfolio would minimise the drawdown in equity values and lessen the total volatility over time, Olsen said.
Investors should have roughly 20 per cent of a balanced fund portfolio in alternatives, he said.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
