Don't join the low volatility cult - beat it

Mismatched timeframes across the investment industry are leading managers to obsess over equity volatility according to James Budden, director of retail marketing and distribution at Baillie Gifford

Consider the following time horizons and ask yourself whether the wealth management industry is doing a suitable job for its clients. Pension savers are looking out at least 15 years. The trustees of their pension plans take a five-year view. Investment managers, meanwhile consider one-year windows, and the CEOs of the companies they invest in are hooked up on quarterly cycles. These timeframes are not aligned to the aims of the end investor and often mean the ultimate beneficiary is being short changed.  One of the biggest outputs from this mismatch is the investment community's obse...