Volatility products within family office portfolio: keep it simple or minimise risk in other ways?

A well-diversified portfolio could be better for controlling risk than volatility investments, according to members of the family office industry.

Portfolio diversification is key, say panellists

Volatility plays executed with caution can be useful in a portfolio, although a well-diversified portfolio could achieve similar risk management objectives, according to speakers at the Demystifying Structured Products panel session held in London on November 7.

Using volatility-linked investments, such as structured products that involve derivatives, is "very tactical hedging", said Philippe Rouault, partner at ResFamiliaris in London. "The best way [to hedge downside risk] is to use asset