Little upside targeting market volatility: Chris Ryan

market volatility funds management van eyk chief executive united states

1 May 2012
| By Staff |
image
image
expand image

Former chief executive of Perpetual Chris Ryan has poured cold water on the idea of investing in market volatility, saying it was too early for investors to be rewarded by it.

Speaking at the Actuaries Institute Financial Services Forum in Melbourne, Ryan said that investors cannot expect to receive any upside if they try to invest in widespread volatility overseas.

"Normally, if you invest in things that are more volatile, you're expected to be rewarded more. And while earnings are improving in the United States, it's basically a bottom line improvement without much top-line improvement," he said.

Ryan's comments contradict views expressed by Australian fund managers at van Eyk's recent annual conference that investing in volatility options as an asset class may be a revolutionary way to provide liquidity and greater profits.

Ryan also warned that the investment situation in Europe cannot improve as long as there was no consensus on how long it would last.

"I can't find two views that are exactly the same. Everybody has a different view, that means people are confused, [and] so long as they are confused, things are not going to move forward," he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

3 weeks 5 days ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month ago

Interesting. Would be good to know the details of the StrategyOne deal....

1 month ago

Insignia Financial has confirmed it is considering a preliminary non-binding proposal received from a US private equity giant to acquire the firm. ...

1 week 3 days ago

Six of the seven listed financial advice licensees have reported positive share price growth in 2024, with AMP and Insignia successfully reversing earlier losses. ...

6 days 3 hours ago

Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equi...

5 days 7 hours ago