How are investors coping with risk-on, risk-off markets?

Investors have had to reassess their strategies to stand out from peers in recent months, as range-bound markets play havoc with long-held approaches.

Macro events have been driving share moves in recent months, and fears over the future of the eurozone have contributed to short-term risk-on, risk-off swings. Now managers are having to revise their approach to adapt to this “new norm” market backdrop. Chris Higham, manager of the £1.9bn Aviva Investors Corporate Bond fund, said investors have no choice but to play risk-on and risk-off periods because economic and production activity is fluctuating so rapidly. Over the past year, Higham’s asset allocation has become a lot more dynamic and he has made substantial moves in and out of c...