olegr got their new infographic by running a design contest:
Design infographic describing an investment strategy
Check out olegr's Infographic contest…
Accounting & Financial
Story to tell in the infographic
We would like to make an infographic about Risk Parity investment strategy. The main idea of this strategy is maintaining the balance of risk in the investment portfolio. Typical portfolios (60% stocks/40% bonds) are not balanced because stocks are about 3 times more volatile than bonds, therefore about 90% of the portfolio's volatility is derived from its stocks. When stock prices fall, the whole portfolio decreases in value. Therefore bonds do not provide the diversification when it is needed the most. The solution to this problem is to have a truly balanced portfolio. This new methodology is known as Risk Parity. During the last two decades it has gradually gained acceptance among institutional investors. Our fund also uses Risk Parity and we would like to use the infographic to describe this strategy.
Data to include in the infographic
1) The comparison of traditional "60/40" (60% stocks/40% bonds) portfolio and the Risk Parity portfolio with the same volatility. We attach an Excel file with the data and a PNG file with an idea of how to visualise the data (the chart). The chart should have the following footnotes in small font: a) 20 years ending 30 November 2018 b) Traditional Portfolio is comprised of 60% U.S. Stocks and 40% Intermediate U.S. Government Bonds c) Risk Parity is comprised of U.S. Stocks, U.S. Government Bonds and Commodities with the same volatility as the Traditional Portfolio (8,3%). 3) The fact that Risk Parity methodology was created by Bridgewater Associates, the largest hedge fund in the world. 4) The benefits of Risk Parity strategy: (a) higher return to risk ratio than traditional portfolios like 60/40; (b) annual expected return of 10-11%; (c) instant liquidity; (d) relatively short and small drawdowns (i.e. declines in price). Footnote in small font: With 12% targeted volatility. This section (benefits) should go in the beginning of the infographic (i.e. "above the fold"). 5) The fact that two main goals of any investor is (a) wealth preservation and (b) wealth accumulation. In both of these areas the most important decision an investor makes is asset allocation (i.e. how much money to invest in stocks, bonds and other assets). 6) The fact that stocks, bonds and commodities contribute about the same volatility to the total Risk Parity portfolio volatility. One idea is to use a pie chart divided into 3 equal parts. 7) The fact that Risk Parity portfolio has drawdowns that are shorter and much less severe than stocks during crises. We include Excel spreadsheet with data and PNG chart with illustration idea. In the Great Financial Crisis of 2008 Risk Parity had a peak-to-trough drawdown of 27% and got back to previous all-time-high after 19 months (April 2008 to November 2009). S&P 500 had a peak-to-trough drawdown of 51% and got back to previous all-time-high after 53 months (October 2007 to March 2012). Footnotes in small font: Using end of month prices. Risk Parity strategy has 12% targeted volatility.
Elements to include in the infographic
1) We would like to illustrate the fact that traditional portfolios are unbalanced (with ~90% of risk in stocks and only ~10% of risk in bonds). One idea is to use scales with 1 pound (stone or some other weight) on one side and 9 pounds on another side. 2) We would like to illustrate that the Risk Parity strategy works well in any economic "season". We would like an illustration of: (a) winter (low inflation, low economic growth) and the best performing asset class during this period is bonds (b) spring (low inflation, high economic growth) and the best performing asset class during this period is stocks (c) summer (high inflation, high economic growth) and the best performing asset class during this period is commodities (d) autumn (high inflation, low economic growth) and the best performing asset class during this period is bonds The main idea is that Risk Parity contains all major asset classes, therefore an investor does not need to forecast what "economic season" is ahead. Despite the uncertainly of the future the Risk Parity portfolio would deliver a satisfactory result. In contrast, traditional strategies such as 60% stocks/40% bonds perform well in some seasons and perform poorly in others. 3) We would like to illustrate that in the Risk Parity portfolio assets move in opposite directions (e.g. bonds go up in price when stocks go down). One idea to illustrate it is by showing cylinders in an auto engine that go up and down in opposite directions from each other. 4) Please include the name of our fund (LogFin Capital) in the infographic (in Cochin font). We don't have a logo, just the name of our fund (LogFin Capital) written in Cochin font. 5) The infographic should have a long vertical orientation. It should have a modern yet moderate/conservative look&feel (probably, a blue palette will work).
We would also need a Russian version of this infographic. That would be a quick "cut and paste" exercise because we will provide Russian text for the infographic once the English version is finished.
Every design category has flexible pricing for all budgets. Infographic starts at ¥64,499.
Full copyright with production-ready files for digital and/or print.
It all began with a design brief.
A quick, interactive guide helped them understand their design style and captured exactly what they needed in their infographic.
Designers across the globe delivered design magic.
olegr collaborated with designers to refine their ideas
When design entries come in, you can rate them so designers know what you’re looking for in your logo design.
99designs has great collaboration tools so you can pinpoint and capture your ideas
And then… they selected a winner!
Along the way, they met lots of talented designers…
We think contests are a super fun way to get design.
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