Adina Grigoriu, CEO , Active Asset Allocation, comments on DC and risk management in the IPE article published in May 2013 and titled “Leave Nothing to Chance”.
“Instead of trying to forecast returns, Grigoriu says there should be a focus on managing risk. And once risk has been properly defined according to the specific situation of the investor, it is easy to define the allocation that respects the risk constraints at a certain point in time…..Whereas in lifestyling strategies the allocation only varies with time, factoring in drawdown constraints – say 15% – means that exposure to the riskiest assets can be temporarily reduced as market conditions change.”