Time to review risk and return

Research findings are showing that there is a greater likelihood of generating robust returns from a low tracking error approach than from a higher one.

In today’s uncertain environment, the managers who focus on low tracking error strategies and who have historically managed to a tight “risk budget” have been gaining attention from both index-oriented investors and those focused on traditional active management strategies. Given the increased level of interest and the attractive performance attributes of these approaches, we wanted to provide investors with more information on this unique corner of the market.