In this post, our research team demonstrates how scenario analysis can highlight different risk sensitivities among same-vintage TDFs that could go undetected by traditional risk measures.
Target Date Funds
In this post, our research team shows how returns-based scenario analysis can be used to enhance traditional portfolio risk analysis by helping to assess potential fund performance through extreme market events.
We illustrate how such an event such as “Brexit” could be (a) used as a litmus test to reconcile TDF information with performance results; and (b) alert to suitability of the selected investment option.