Alternative beta: Shielding investors from volatility

Volatile markets and an uncertain economic outlook have underscored the importance of global diversification in recent months. Concerns on the prospects for fixed income are widespread in light of a maturing 30-year bull bond market and the inevitability of rising rates.  Meanwhile, the considerable highs that developed equity markets have reached of late means that this asset class enjoys less obvious valuation support than it did 18 months ago. Reports of various professional investors increasingly 'going to cash' to safeguard assets is a reflection of lower conviction and potential...