Early recognition and swift correction of any weak spot is key to our long-term success. The final overlay to RiverFront’s Art and Science of Dynamic Investing is risk management ~ the striking of the balance between investor return objectives and risk tolerance. Finding the correct weights for each helps us create a smoother investment journey.
RiverFront practices both proactive and reactive risk management and has tactical plans in place for a myriad of possible scenarios. By managing risk proactively we ensure complex portfolios with multiple asset classes maintain risk levels consistent with portfolio risk tolerance and the overall investment strategy. We engage in reactive risk management by continually examining strategies to ensure the market is validating our theories. If we do not believe the market is affirming the strategy, we change our course.