David Millar, head of multi-asset at the firm told Portfolio Adviser that the firm has been expecting a return of volatility for the past few years, but now it believes the current environment will remain for the foreseeable future.
“We have always thought that volatility would return to markets. yet, for much of the past two years, central bank actions have kept a lid on that volatility. But, it has picked up and we have now had to go back and say we think it will continue.”
However, he adds, there are ways to access volatility itself as an asset class and, doing so, opens up ideas and opportunities, not just in volatility instruments, but in more traditional asset classes as well.
