Managing risk in MADR

September 26, 2025

Time to Read: 1:53 mins

BNY Investments Newton head of mixed assets investment, Paul Flood explains how the team is addressing the risks around strong equity market performance and the high gold price.

Key points:

The BNY Mellon Multi-Asset Diversified Return (MADR) strategy has added S&P 500 put options for downside protection following strong market performance and high valuations, especially in US equities.
Gold prices have surged 35% year-to-date, driven by foreign central banks increasing gold reserves, while ETF holdings remain stable, suggesting potential for further gold gains.
Despite gold's rally, the MADR strategy has reduced its exposure to the precious metal to manage risk.

2664150 Exp: 29 December 2025

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