Minimum risk has done well in recent years; even better times lie ahead.

This post is issued by Osmosis (Holdings) Limited, a London based investment management group. For more information, please contact Lisa Harrison on 07716 912832 or [email protected]

Minimum risk has done well in recent years; even better times lie ahead.

It is generally accepted that the more you risk, the greater the return you should enjoy. Whatever the broader truth of this – and it is a widely accepted investment principle – it is a striking fact that in practice, portfolios of lower-risk stocks have produced higher risk-adjusted returns than both the market and portfolios of high-risk stocks (Chart 1). Putting numbers on this, and based on the universe of stocks in the MSCI World Index since he end of 1999, lower risk (Minimum Volatility or ‘Min Vol’) stock portfolios have delivered a compound gross return of 7.5% per annum while the market has returned 5.0% (MSCI World Index) to 31 December 2019.


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Important Information

This document is issued by Osmosis Investment Management US LLC (“Osmosis”). Osmosis Investment Management UK Limited (“Osmosis UK”) is an affiliate of Osmosis and has been operating the Osmosis Model of Resource Efficiency. Osmosis UK is regulated by the FCA. Osmosis and Osmosis UK are both wholly owned by Osmosis (Holdings) Limited (“OHL”).

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