News & Insights

Opinion by Merryn Somerset-Webb for Bloomberg

Financial advisers often categorise investors based on their risk tolerance, which influences the proportion of bonds and equities in their portfolio. However, with recent changes in the market, especially rising bond yields and inflation, this traditional approach to risk management has been called into question.

Dan Hurdley, Managing Director of ARC Research, emphasises that the volatility levels in what are considered "cautious" portfolios are now at the high end of the range, primarily due to increased volatility in fixed income instruments.

The article suggests this change means that even portfolios traditionally labelled as cautious are becoming risky, calling for a reassessment and potential relabelling by the fund-management industry.

Read the full article using the link below