However, increasing concerns about geopolitical and macroeconomic risk and equity volatility make it important for strategies to seek to minimize downside risk.
The use of currency hedging attempts to further mitigate risk. Investors are also in search of sustainable high levels of income in a low income environment.
Higher yielding equities often come with higher risk. Incorporating a low volatility component can counter that risk while seeking to provide – growth and income – to meet investors’ needs.
Norman said these strategies are designed to benefit spenders who are looking for capital appreciation in their retirement years and savers who are in the wealth accumulation phase.
“When dividends are reinvested, they can lower risk and increase total annualized returns over time,” he said.
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