Don’t let catastrophic market drawdown become a drag on your business. When you protect your client accounts, you can protect your business.
A transparent, disciplined risk mitigation strategy
Risk Assist® is a transparent, disciplined risk mitigation strategy
Why do advisors need catastrophic risk mitigation?
The potential for — and fear of — a catastrophic market event remain. Emotions like fear can cause investors to make impulsive investment decisions, especially during periods of intense market volatility. Be prepared to manage not only your clients’ investments, but also their emotional responses to turbulent conditions.
How can Risk Assist help manage investments and clients?
Risk Assist® is designed to prevent the kind of poor decision-making that can derail investors’ financial goals and put their financial health in jeopardy.
An algorithmic strategy that uses volatility forecasting, Risk Assist is engineered to systematically adjust the allocation of the underlying portfolio — or “de-risk” it — to limit losses during steep market declines.
What makes Risk Assist different?
How does Risk Assist work?
Horizon offers 3 Risk Assist models to account for investors' varying loss tolerance thresholds
De-risk to limit losses
- Risk Assist sets the target loss tolerance threshold for the portfolio and monitors the portfolio on a daily basis to objectively determine when adjustments are needed
- As the portfolio falls toward its target loss threshold, it de-risks, systematically shifting assets away from higher-risk securities like equities toward lower-risk ones like U.S. Treasuries.
- The goal? To be substantially invested in a basket of lower-risk securities by the time the target loss tolerance threshold is reached.
Reinvest to capture upside
- As market conditions improve, Risk Assist is designed to incrementally reinvest, to bring the portfolio back to its original growth objective.
- During normal market volatility, Risk Assist reverts to the "OFF" position, keeping the portfolio fully invested with the goal of capturing upside and continuing to grow its value.
Ratchet to lock in gains
- As the portfolio's value grows, it ratchets — or sets a new and higher loss tolerance threshold — with the goal of locking in portfolio gains.
Risk Assist is not a...
- Market timing strategy
- Guarantee
- Protection against flash risk
- Way to capture all of the upside
