Market Views: Multi-Asset

Risk-controlled growth: Solution portfolios for outcome-oriented investors


With the continued uncertainty about macroeconomic conditions, some investors see the potential mispricing of assets as an enormous opportunity, while others focus mainly on the related risk. In this new investment landscape, what is the best strategy for investors seeking to achieve higher growth while prudently managing risk? As a solution, we propose a class of asset allocation strategies called risk-controlled growth. These portfolios have concentrated allocations to growth risk premiums, with dynamic changes to risk exposures during unfavorable risk premium pricing scenarios.