How to manage sustainable returns in today's challenging markets

RISK MANAGEMENT

In order to be sustainable, it is important to take and manage risk wisely, writes Richard Moore of Santander

Achieving sustainable stock market returns is the result of taking and managing risk wisely. In other words, it is the achievement of higher returns on the upside and fewer and reduced losses on the downside. In order to be sustainable, it is important to achieve this consistently over the longer term and in all market conditions, both bull and bear. Downside risk is controlled by employing internal risk controls while the upside is achieved by an investment process that seeks to make positive relative returns over the course of a stock market cycle. With regard to risk control, our i...