Dynamic Allocation Moving To Retail

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    Dynamic allocation is moving from the institutional space to retail and defined contribution pension plans, says Richard A. Davies, senior managing director, global head of defined contribution and multi-asset business development at AB. Speaking at its ‘Institutional Investment Symposium’ on ‘Multi-asset Solutions,’ he said the objective is to reduce volatility by mitigating extreme outcomes. The idea is to be adaptive, not over-reactive. He likened the approach to hurricanes where meteorologists can watch them building and give people time to react. Dynamic allocation gives investors time to take risk out of their portfolio by using tools to reduce downside volatility.