Orion partners with Northern Trust Asset Management to bring advisors strategies designed by a Top 20 Global Asset Manager* with $1.2T** in assets under management. Northern Trust Asset Management believes investors should be compensated for the risks they take – in all market environments and in any investment strategy.
A Strategic Equity Allocation Strategy for All Markets
Having downside protection is very important to investors making this a key reason to allocate assets to low volatility strategies. Traditional low volatility strategies have challenges such as unintended sector allocations and interest rate sensitivities which are uncompensated risks. Further, we found that high quality exposures tend to have low volatility from a forward looking perspective and make great complement to low volatility investing. We created our Quality Low Volatility strategy to deliver consistent long term outperformance with lower risk than index while avoiding pit falls associated with traditional low volatility investing.
The Quality Low Volatility strategy is a diversified, higher quality and lower volatility portfolio that delivers attractive up-market participation and protection during down markets. This strategy is designed to efficiently deliver excess returns with a 15% – 25% reduction in absolute volatility relative to the benchmark while mitigating uncompensated risk exposures.
Investors Benefit From:
- Outperforming the index by taking less risk; providing lower equity volatility without lower return expectations and a smoother investor experience
- The quality factor acts as a predictor of future stock volatility and can add to return and further reduce portfolio risk
- Using risk efficiently means getting paid for the risk taken. QLV focuses on stocks that are high quality and low volatility, while avoiding uncompensated risks, such as sector bets.
When Portfolios Don’t Deliver Expected Outcomes, Investors Want to Know “Why?” Anytime someone invests, they do so with a specific outcome in mind. But as the saying goes, the best-laid plans often go awry. Northern Trust Asset Management has examined more than 200 institutional equity portfolios, representing more than $200 billion in assets, and what they found may surprise you.
The Risk Report Has the Answers
When Portfolios Don’t Deliver Expected Outcomes, Investors Want to Know “Why?”
Anytime someone invests, they do so with a specific outcome in mind. But as the saying goes, the best-laid plans often go awry.
Northern Trust Asset Management has examined more than 200 institutional equity portfolios, representing more than $200 billion in assets, and what they found may surprise you.
Timely Resources and Insights
Point of View
Insights from investment experts
and noted industry academics
Special Report: The New Way to De-Risk
*Total worldwide assets under management. The above rankings are not indicative of future performance. Unless otherwise noted, rankings are based on total worldwide assets under management of $1.2 trillion as of June 30, 2021 by Pensions & Investments magazine’s 2020 Special Report on the Largest Money Managers.
**Assets include $6.9B in AUM and $3.6B in AUA as of March 31, 2021 (updated quarterly). Source: 50 South Capital.