{"id":28001,"date":"2012-11-20T21:21:00","date_gmt":"2012-11-20T20:21:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/strategie\/philippe-aurain-the-choice-of-flexibility-is-not-trivial\/"},"modified":"2012-11-20T21:21:00","modified_gmt":"2012-11-20T20:21:00","slug":"philippe-aurain-the-choice-of-flexibility-is-not-trivial","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/strategie\/philippe-aurain-the-choice-of-flexibility-is-not-trivial\/","title":{"rendered":"Philippe Aurain: &#8220;The choice of flexibility is not trivial&#8221;"},"content":{"rendered":"<p><strong>Next Finance: What do you think of the current appetite for flexible funds?<\/strong><\/p>\n<p><strong>Philippe Aurain: <\/strong>  The use of flexible funds is primarily motivated by the market environment. Just like the stock market crisis had<br \/>\nhighlighted the benefits of funds &#8220;managing risk&#8221; (fund with target volatility, dynamic hedging, etc&#8230;), the current market environment of<br \/>\nlow interest rates make appear quite naturally the idea of a &#8220;hunt for yield&#8221; over a wide area of asset classes.<\/p>\n<p>Indeed, flexible funds span a broad family of processes, from the classic &#8220;diversified&#8221; to the absolute retur n funds. It seems that these<br \/>\nprocesses share the conviction that the carry trades returns are insufficient and risky in terms of a potential rise in interest rates and with  uncertain market trends, it is better to be flexible to capture performance.<\/p>\n<p><strong>Is it better for institutional  to  manage flexibility  inside  (that is to say, work on indicators enabling them to increase their<br \/>\nallocation in certain funds and reduce them in others) or outsourcing the flexible management, simply defining a basket of<br \/>\nassets that will be invested in flexible funds and proceed with the selection of funds?<\/strong><\/p>\n<p>Firstly the choice of flexibility is not trivial. The relative performance of flexible funds under their benchmark can be quite volatile.<br \/>\nThen, the percentage of effective and reasonable flexibility for a particular investor depends on its ability to carry risks  and the definition  of its asset allocation as a whole.<\/p>\n<p>Finally, the choice between  insourcing  and outsourcing for many is a matter  of internal  resources;  knowledge of a wide range of asset<br \/>\nclasses is necessary and methodologies for effective risk management are recommended.<\/p>\n<p><strong>What should evolve to improve the current offer?<\/strong><\/p>\n<p>In view of the diversity of processes, we should probably define a typology helping investors to find themselves in a multi-faceted offer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to Philippe Aurain, CEO  of  F\u00e9d\u00e9ris MANAGEMENT, given the diversity of processes called Flexible  Management; we should probably define a typology helping investors to find themselves in a multi-faceted offer&#8230;<\/p>\n","protected":false},"author":21,"featured_media":27999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1483],"tags":[1809,1655,1658,1659,1690,1657,2095,1921,1650,2129,1649,2131,2126],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/28001"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=28001"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/28001\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/27999"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=28001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=28001"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=28001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}