Chasing the highest returns sounds appealing, until volatility wipes out years of progress. For investors nearing retirement, inheriting wealth, or managing a business sale, stability often matters more than big wins.
Low-volatility strategies, especially those involving alternatives, can provide the steady growth and peace of mind today’s investors need to secure tomorrow
The danger of chasing high returns
Every market cycle brings its share of ‘next big things’, from tech booms (including AI) to property surges. The temptation to chase eye-catching gains is strong.
But higher potential returns come with higher risk. Volatile investments can lead to painful losses that undo decades of careful saving. Timing matters too. Retiring during a market downturn or needing access to capital after a dip can permanently reduce your nest egg.
Protecting the wealth you’ve built is often more important than chasing outsized returns that could put it at risk.
Example: The chart below compares our clients’ average performance during major global equity declines (as measured by the MSCI World Index) over the past 20 years. The traditional 60/40 Balanced Index benchmark is provided for comparison.
Comparison of average performance during major global equity declines 
Why consistency beats volatility
“Slow and steady” isn’t just a saying, it’s a proven strategy for wealth protection. Steady, low-volatility growth offers:
- Predictability – fewer shocks and surprises, making long-term planning easier.
- Protection – avoiding large losses means you don’t waste years clawing your way back.
- Peace of mind – less stress and uncertainty, more confidence in your financial future.
Avoiding large losses is key to compounding wealth. A 25% loss followed by a 25% gain doesn’t get you back to where you started, it leaves you behind. Preserving capital through market downturns is key to compounding wealth consistently over time.
How alternatives deliver steadier growth
Traditional equity markets can be volatile, while bonds no longer provide the income or downside protection they once did.
This is where alternatives step in, offering more consistent, lower-volatility outcomes by responding to different economic drivers and cycles than traditional investments. Key options include:
- Private credit – offering regular income through lending opportunities outside traditional banks.
- Private Equity – investing in private businesses which are not subject to the daily scrutiny and sentiment driven volatility of listed companies.
- Real assets – tangible investments such as property, infrastructure, and natural resources that diversify returns.
- Specialist strategies – niche managers who focus on resilience and capital protection.
At Saxe Coburg, we focus on liquid alternative investments that give clients more flexibility and help protect capital in falling markets. These approaches draw on specialised skills across areas like M&A, macro trading and arbitrage strategies. We also select high-quality equity managers whose deep research and disciplined portfolio management achieve returns well in excess of the broader market.
Blending alternatives with traditional investments smooths out shocks and reduces severe downturns. While uncorrelated strategies may sometimes underperform in bull markets, their real value emerges during market stress, helping preserve capital over the long term.
Real Performance in Action
The chart below shows our clients’ asset-weighted returns since March 2014, benchmarked against relevant market indices. Portfolios are grouped into Balanced and Growth categories to provide meaningful comparisons.
As you can see, our portfolios have delivered similar returns to equity markets with significantly less risk.
Comparison of average performance March ‘14 – September ‘25
Portfolio construction, trade-offs and tailoring to you
At Saxe Coburg, building defensiveness and resilience into portfolios is a core principle. We carefully select specialist skilled managers, review strategies regularly, and blend alternative assets to align with each client’s goals.
Some clients prefer lower volatility and maximum protection, while others balance a little more risk for growth potential. We’re transparent about trade-offs: lower-volatility options may not soar in bull markets, but they are designed to perform when conditions get tough.
Investing with peace of mind
For next-gen investors, and for those approaching retirement, the real measure of success isn’t the highest possible return, it’s the most reliable one.
- Passing on wealth: Consistency protects your legacy.
- Retirement planning: Steady income and lower volatility preserve your lifestyle.
- After selling a business: Stability ensures the wealth you’ve built continues to support your goals.
Alternatives play a key role in this. They balance portfolios, help smooth out shocks, and ensure your investments are focused on protecting and growing wealth with confidence.
What’s next?
Markets rise and fall, but is your portfolio built to weather the swings, or simply ride them out? At Saxe Coburg, we build portfolios that value resilience as much as returns. For over 30 years, we’ve helped clients grow and protect wealth through good times and bad, often delivering positive results even when markets falter. True wealth is measured not by chasing the biggest gains, but by securing the future you want, for yourself, and for the generations to come.
Discover how alternatives can safeguard your wealth. Get in touch today to explore a portfolio designed for steady growth and peace of mind.