Dynamic Equity Risk Management

City National Rochdale's Approach to Private Client Risk Management

Dynamic Equity Risk Management (DERM) is a proprietary process used to manage the downside risk of private client portfolios. DERM allows our clients to be exposed to equity markets without being exposed to an unlimited degree of downside risk that exceeds their risk budget. DERM acts as a circuit breaker for limiting losses on specific asset classes and specific security holdings.

Tactical equity allocation management is a proactive process that rebalances a client’s equity exposure based on our global economic outlook, and equity and credit market outlooks. This process represents the single most important determinate of managing the macro environment risk factors likely to impact each client’s portfolio. Based on our outlook on how the economic cycle will impact equity levels over the next 6-12 months, we proactively modify asset allocation weights within a portfolio. This process integrates our economic analysis with equity market factors to continuously measure our desired degree of equity exposure.

Learn more about City National Rochdale's private client risk management solutions and how they can limit downside risk exposures by contacting a City National Rochdale Senior Investment Consultant.


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