History shows that volatility is correlated with prices and exhibits some clustering effects. Based on this observation, at BNP Paribas Asset Management, we have designed an innovative strategy named Target Risk, which aims at delivering long-term sustainable returns by maintaining a constant risk exposure.
Combining findings of academic research and the work of a dedicated and experienced quantitative team, BNP Paribas Target Risk strategy rests upon three fundamental elements:
This innovative approach allows investors to participate in rising markets while reducing drawdowns, access a broad and diverse investment universe (developed and emerging countries, traditional and alternative asset classes), and diversify their exposure relative to traditional benchmarked strategies.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay.