Risk is a seemingly simple and intuitive concept. But in the asset management industry, investors use myriad metrics to assess portfolio risk.
At Vontobel Asset Management, our primary focus has always been on absolute risk. We believe the cornerstone of our approach to risk management—investing in stable, predictable businesses—is in-line with the end goals of our clients as it can produce growth with lower levels of volatility and preserve capital in difficult markets.
In this paper, we explore issues that should be considered when using common approaches to evaluating risk, and then describe our approach at Vontobel.