Pierre Bonart

“The consequences of the subprime crisis lend fuel to volatility. We are ­cautious given the current market conditions, although we don’t believe the market is turning bearish. We have made some changes in fund selection: we have split our alternative strategy between two multistrategy ­products – L Multi Hedge and L Dyna Hedge. While this won’t have a ­significant effect on portfolio volatility, it increases expected return. It also reduces specific or ­diversifiable risk in the underlying funds. We also have increased our investments in US Select Growth, which has the potential to deliver even higher returns.”