Dynamic hedging may help manage sequence risk and improve the resilience of the retirement income plans that advisers create for their clients, according to a whitepaper published by Milliman.
The whitepaper - Diversification under pressure: How diversification behaves during significant market falls and the implications for retirement income - examines how traditional diversification behaves during periods of market stress and explores the role of dynamic hedging in building more resilient retirement portfolios. Milliman's research explores the role played by investment diversification during three historical periods of significant market stress – 2002, 2008 and 2022 – and what that meant for a UK investor taking income. The analysis found that, while diversification remai...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
