Focus Sections » OTHER FOCUS SECTIONS » RISK MANAGEMENT

Determining private clients’ risk tolerance in order to create an appropriate portfolio structure requires a form of analysis akin to that undertaken by psychologists

Successful fixed income investing requires placing risk analysis at the heart of portfolio management

The use of universal stock futures (futures on single stocks) as a risk management tool has been on the increase since their launch in 2001. This simple product can be used in some basic but very

effective hedging techniques. In their book, Single Stock Futures: A Trader’s Guide, from which an edited extract follows, Patrick Young and Charles Sidey explore how wealth managers can effectively implement such techniques and discuss the advantages of risk transfer and central counterparty (CCP) in the context of the new undertakings for collective investment in transferable securities (Ucits) directives.