The objective of the strategy is to have significantly less volatility than the relevant equity market while delivering returns that meet or exceed the assigned benchmark over a full risk cycle.
*There is no guarantee that the investment objective will be met.
The strategy employs a risk forecasting and optimization process pioneered by Analytic to achieve a more effective risk/return trade-off than a capitalization weighted approach.
Low Volatility Equity has a lower correlation to the overall market than traditional long only equity strategies. The strategy tends to outperform in falling markets and lag in sharply rising markets. It may also produce a high tracking error relative to capitalization-weighted indices.
|Absolute Risk Target:||Overall volatility target (as measured by standard deviation) between 20% – 40% less than the applicable benchmark.|
|Investor Fit:||Investors seeking exposure to equities with significantly less risk than the capitalization weighted indices or other actively managed strategies with low tracking error to the capitalization weighted indices.|
Please click on the following link to obtain a Fact Sheet which will contain more detailed information, including performance information, for this solution.