Recent years have been volatile as investors have tried to forecast the trajectory for inflation, interest rates, and global growth. Conditions are looking up for equity investors now, but material uncertainty remains, and in our opinion we aren’t out of the woods yet. That is why, while the current trend of disinflation and continued economic strength supports cautious optimism, we expect volatility and fundamentals to play a larger role in equity returns moving forward. Market backdrops like the current environment highlight the importance of managing volatility and diversifying equity risk exposures. We believe the Shareholder Yield strategies offer attractive attributes to fill both roles: providing resilience in down markets through organically lower-than-market volatility and equity style diversification.
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